Endogenous Growth, Market Failures and Economic Policy develops, within a rigorous formal framework, innovative and unconventional macroeconomic policy perspectives that can be deduced from the New Growth Theory in the presence of market imperfections, adopting the standard structure of fiscal, monetary and trade policy for the book. For instance, the introduction of monopolistic competition leads to positive growth effects of fiscal policy as well as protection of infant industries.

MARTIN ZAGLER is Assistant Professor, Vienna University of Economics & B.A., Vienna. He previously studied at the J. Kepler-University of Linz, University of Aix-Marseille II, Vienna University of Economics & B.A., The Vienna Institute for Advanced Studies, and the European University Institute, Florence. He received the Stephan-Koren Price for the best dissertation at the Vienna University of Economics & B.A. in 1995/96 and the Theodor-Körner Price for his contribution to Growth policy in 1997. His fields of research are Intertemporal Macroeconomics, Endogenous Growth, New Keynesian Economics and Monetary and Exchange Rate Economics.

List of Figures and Tables Acknowledgements Introduction: the Empirics of Economic Growth PART I: FISCAL POLICY Economic Growth, Environmental Damage, and Sustainable Taxation Endogenous Growth, Division of Labour, and Fiscal Policy Debts, Deficits, and Economic Growth PART II: MONETARY POLICY Monetary Policy in a New Keynesian Model of Endogenous Growth Foreign Indebtedness Inflation, and Exchange Rate Overshooting PART III: TRADE POLICY Protectionism, Trade, and Growth Estimating Growth Conclusion: Policy Implications Appendix Endnotes Bibliography Name Index Subject Index