Introduction -- Theories -- Optimal growth theory revisited -- Continuous-time modelling -- Demand factors and GDP growth -- Lamp & banks balance sheet constraints -- Secular stagnation -- Policies -- Public finance and inflation -- Government budget constraints -- Productivity as an...

Developing a new and highly innovative theory of economic policy, this book deals with conflicts between strategic actions by public and private agents. It builds on the Lucas critique but also applies the tools introduced by Tinbergen and Theil to dynamic policy games and from there derives a...