We review the literature on resolving bank and corporate sector crises to identify government policies that affect the depth of a crisis and the ease and sustainability of recovery, and to analyze their fiscal cost. A consistent framework - including sufficient resources for loss-absorption and...

Keynes's "Grandchildren" essay famously predicted both a rapid increase in productivity and a sharp shrinkage of the workweek - to fifteen hours - over the century from 1930. Keynes was right (so far) about output per capita, but wrong about the workweek. The key reason is that he failed to...