We review the literature on resolving bank and corporate sector crises to identify government policies that affect the depth of a crisis and the ease and sustainability of recovery, and to analyze their fiscal cost. A consistent framework - including sufficient resources for loss-absorption and...

Keynes's "Grandchildren" essay famously predicted both a rapid increase in productivity and a sharp shrinkage of the workweek - to fifteen hours - over the century from 1930. Keynes was right (so far) about output per capita, but wrong about the workweek. The key reason is that he failed to...

Social contracts about inequality and redistribution are country-specific. We rely on a model of inequality and redistribution where multiple steady states can emerge in given country. We link the model to the recent literature on beliefs and argue that beliefs are a major determinant of which...

In diesem Beitrag wird der Zusammenhang zwischen Einkommensungleichheit und Beschäftigungswachstum untersucht. Dabei zeigt sich, dass in Ländern, die über längere Zeit hinweg eine größere Einkommensungleichheit zuließen, auch eine Ausweitung von Beschäftigungsmöglichkeiten generiert...