GrowthSpring 2013

Topic 6

What is growth?Short-run

Expansion in GDPLong-run

Expansion in productive potential

Sources of short-run growth

Business cycle fluctuationsFiscal and monetary policy

Sources of long-run growth

Factors of production

Growth storiesWhy don’t resources matter?

The special case of “Dutch Disease”

Growth storiesWhy savings might matter?

Growth storiesWhy savings might matter?

Growth storiesWhy savings might matter?

Catch-up model of growthProduction functionDiminishing marginal returns

Growth storiesWhy savings might matter?

Managing the transition

Growth storiesWhy savings might matter?

Lessons for the US?InnovationDoes it matter whose savings?

Growth storiesPopulation and growth

Positive factor

Growth storiesPopulation and growth

Negative factorsThinning of the capital stockDependency