This book originated in notes for graduate courses in macroeconomics and monetary theory that I taught at the University of Minnesota during the years 1977-1985. My goal has been to introduce some methods and results of dynamic macroeconomics and to help the methods to concrete problems in macroeconomics and monetary economics. To attain this goal, I sacrificed generality and sometimes I hope that the references at the end of each chapter will encourage further and deeper study of the technical material.