Report December 2001

The United States is in the early stages of a recession that could be as deep and intractable as any since the Second World War, with serious consequences for the rest of the world. In his editorial for this issue of the Report, Distinguished Scholar Wynne Godley argues that the situation can be remedied, but only if there are large changes in policy, in the United States and elsewhere.

Contents: Editorial: "Recession USA" (Wynne Godley) * New Policy Notes: The New Old Economy; The War Economy; Hard Times, Easy Money?; Are We All Keynesians (Again)? * New Working Paper topics include: Central bank independence; institutions and European unemployment; common currency and fiscal policy; uncertainty, conventional behavior, and economic sociology; incentives in HMOs