For several decades, discretionary fiscal policy has been in disrepute. Most economists viewed it as unnecessary, because monetary policy was up to the job of stabilizing the economy. Economists also viewed fiscal policy as too clumsy to deal with the relatively short recessions that became the...

Since 1990 a new genre of research, often described as the 'new economic geography,' has emerged. It differs from traditional work in economic geography mainly in adopting a modelling strategy that exploits the same technical tricks that have played such a large role in the 'new trade' and 'new...

Simple macroeconomic models based on IS-LM have become unfashionable because of their lack of micro-foundations, and are in danger of being effectively forgotten by the profession. Yet while thinking about micro-foundations is a productive enterprise, complex models based on such foundations are...