The authors stress how the rise of China and India has changed the world economy, moving it towards disequilibrium. Several alternative economic policies are tested to seek a way towards a high growth in any continent associated with long-run real and financial equilibrium

German unification hit the West German economy in a prosperous and appeared as a huge demand shock at least for the first few quarters. This combination resulted in a major increase of imports from the main trading partners of West Germany, which may have helped to cushion recessionary trends...