In this speech, made shortly after the stock market crash of October 1987, President Corrigan identifies imbalances in the U.S. and the world economy that contributed to financial market instability. He emphasizes that the reduction of U.S. federal budget deficits and the removal of barriers to...

This paper evaluates Hayashi's conjecture that Japan's postwar saving experience can be accounted for by the neoclassical model of economic growth as that country's efforts to reconstruct its capital stock that was severely damaged in World War II. I call this the reconstruction hypothesis. I...

The authors document the trends in U.S. saving during the 1980s, giving particular attention to those measures of saving that gauge the growth of productive assets. They go on to assess the effects of these developments on capital formation and the nation's long-term economic potential.