Contemporary Economic Issues

This volume contains chapters on a range of topics which include economic methodology in macroeconomics, central bank independence, policy signalling, public policy as second best analysis, the determinants of economic growth, a continuum approach to unemployment policy, and pensions. The volume dispels the notion that these are largely unrelated issues and illustrates the merger process which is taking place between hitherto rather separate economic sub-disciplines. They move the focus of attention and challenge received wisdom.

Important lessons for policy makers are provided here as contributors evaluate the effectiveness of domestic economic policies and the recommendations of international organizations such as the World Bank regarding the economic development of developing countries. Challenges posed by debt problems, corruption, population dynamics, poverty, and the absence of adequate human and physical capital are highlighted. Contributors cast doubts on the conclusions of the prevailing theories of economic development with patterns of economic change over the course of the 20th century. Their findings point out the issue of inadequate social capability as a critical factor in understanding the lack of economic development in many developing countries. They suggest that contemporary theorizing tends to pinpoint necessary but insufficient conditions for the successful implementation of development strategies in these countries.

At first sight, this volume, which contains chapters covering topics ranging from economic methodology through central bank independence to pension systems, might be viewed as a potpourri of largely unrelated issues. Yet these chapters, written by leading researchers in their respective fields, dispel this notion, illustrating the ongoing merger process between hitherto quite separate economic sub-disciplines.

Presents the final twelve lectures of a course that examines some of the most important issues facing economic policymakers in the United States, determined by a survey of economists commissioned for this course.

A comprehensive overview of current research in the field of trade, payments and debt. Grossman and Helpman provide a non-technical review of the literature on technological deteminants of trade. Thisse and Fujita discuss current work on the spatial configuration of economic activities. Robert Findlay tracks world trade from 1000 to 1750, while Robert Baldwin surveys the impact of international trading alliances. In his Presidential paper, the World Bank Vice-President Michael Bruno looks at the pattern of debt crises and economic recovery. The sustainability of external debt in Africa is examined by Daniel Cohen. Alberto Giovannini's argues the case for flexible exchange rates.