The Great Recession, which was preceded by the financial crisis, resulted in higher unemployment and inequality. We propose a simple model where firms producing varieties face labor-market frictions and credit constraints. In the model, tighter credit leads to lower output, lower number of...

The paper reviews paradigms of welfare, principally the industrialization thesis, the three worlds of welfare and social investment states and shows how these link to wider public policies and underlying assumptions. It locates explanations in historical and contemporary contexts. The literature...