In recent years, a case has been made against the use of fiscal policy for stabilization purposes. Real business cycle theory, which portrays the economy as being in global intertemporal equilibrium, concludes that fiscal policy is useless, while the Ricardian equivalence hypothesis concludes...

For various reasons ? empirical, technical and casual ? modern (neo-classical) growth theory has centered its attention on steady-state exponential growth. When the models are intented to serve as a guide to policy, the tacit presumption is that the goal of growth policy is to increase the...

This paper provides a comprehensive survey on six aspects of rising inequality in the US: changes in labor?s share, inequality at the bottom, inequality at the top, labor mobility, inequality in consumption as contrasted to inequality of income, and international differences in inequality,...

While Europe?'s level of productivity has almost converged to the United States?'one, its per-capita income has leveled off at about threequarters of America?'s. How could Europe be so productive yet so poor? The simple answer is that hours per person in Europe have fallen drastically in the...