We introduce a formula for the optimal savings rate in an economy driven by an investment policy reflecting competitive equilibrium. The reasonable numbers generated by the formula should be of help not only to assess our present situation but also to prepare our future. Moreover, this chapter...

Olivier de La Grandville is visiting professor in the Department of Management Science and Engineering at Stanford University, a position he has held since 1988. A professor of economics at the University of Geneva between l978 and 2007, he has also held visiting positions at the Massachusetts...