Nobel Prize winner James Tobin has made outstanding contributions to modern macroeconomics. In this final collection of his work he examines the economic policies of the United States and its relations with other major economies after 1990. In James Tobin's view, the welfare of populations...

This chapter is a critical survey of literature on the implications of government financial policy for economic activity. The central question is whether the mode of financing of a given path of real government purchases — by taxes, non-monetary debt issue, or money creation — has real...