In neoclassical economics economic growth depends upon savings. The paper discusses problems with this conventional view, and how these have been tackled, from pre-Solowian authors up to the recent New or Endogenous Growth Theory (EGT). These difficulties became particularly clear with the...

In his 'Comments', Tom Michl defends the proposal for a fully funded pension scheme based on a saving-led 'classical growth model' against my Keynesian contention that a higher saving supply would be deflationary in both the short run and the long run. Michl adds a further argument that an...

The paper critically examines the dominant neoclassical views on the adoption of mandatory Fully Funded (FF) pension schemes as a partial or complete substitute for the unfunded Pay-as-you-go (PAYG) type. According to this view, such a transition will have the positive real effect of endowing...