The projections for economic growth in the industrial countries during 1985-95 have been revised steadily downward - to a pessimistic 2.5 percent a year. The crucial element in achieving high growth rates is a rising rate of investment, itself a reflection of confidence in the economy. The...

The orthodox theory of economic growth has long been unable to explain some real world "stylized.facts" such as the reasons for continued long-run expansion, the absence of convergence in per capita incomes across rich and poor countries and the frequent presence of medium-term changes in growth...