Author Description

This book provides the intellectual and empirical underpinning for the view that the continuing crisis of the world economy is due to two deep-seated underlying causes, of which the stagflation and rising protectionism in industrial countries and the Third World's debt crisis are dramatic symptoms. The authors show that the roots of the problem lie in the microeconomic rigidities that were steadily built into many economies, and the management of public finances, itself a worldwide problem that portends a global "crowding out" of investment expenditures in developing countries caused by the persistence of transfer payment fueled fiscal deficits in major developed countries.