Growth patterns have changed radically over the last two decades, to which capital and the labour markets appear to have failed to adapt. Unemployment in Europe has been growing, almost without remission, to levels unseen since the Great Depression. These facts are somewhat at odds with the development of growth theory which has mainly been orientated towards an equilibrium full employment framework. The main message of equilibrium theory of fluctuations was precisely that the policy maker is impotent. Now, with the universal acceptance of endogenous growth theory, the common concensus proposition would be `we are all neo-classical for the short run and Keynesian for the long run' (investment being too important for growth to be left entirely in private hands).

Zusammenfassung
Now, with the universal acceptance of endogenous growth theory, the common concensus proposition would be `we are all neo-classical for the short run and Keynesian for the long run' (investment being too important for growth to be left entirely in private hands).

Inhalt
Preface; A.B.Atkinson - The International Economic Association - List of Contributors - Abbreviations and Acronyms - Introduction: Economic Growth, Capital and Labour Markets; J-P.Fitoussi - PART 1: GROWTH AND INSTITUTIONS - Should the Former Socialist Economies Look East or West for a Model?; A.Blinder - Israel's Stabilisation Programme of 1985, or Some Simple Truths of Monetary Theory; D.Patinkin - Business History From the Microeconomic Perspective; N.Lamoreaux & D.Raff - PART 2: DEVELOPMENTS IN THE THEORY OF GROWTH - On Growth Theory; F.Hahn - Technical Progress in the Theory of Endogenous Growth; P.Aghion & P.Howitt - About Investment in Macroeconomics; E.Malinvaud - PART 3: CAPITAL AND LABOUR MARKETS - Interest Rates Puzzles, Competitive Theory, and Capital Constraints; J.Stiglitz - Accounting for Stock Price Movements; J.Campbell - Is the Future What it Used to Be?; S.Maital & S.Maital - Optimal Currency Areas, Large and Small; W.Branson - Contract Inefficiency, Wages and Employment: An Assessment; J.Malcomson - Some New Thoughts on Migration and Development; O.Stark - Index