Each of the fifteen contributions to this volume explores a particular area of economic theory, presenting fresh insights and analyses. The first three chapters, on macroeconomics and policy, study the effects of wage-cuts, administered prices, deficit financing and other monetary measures taken by the government. Part II discusses the economics of equilibrium and welfare, analysing the implications for decentralization in growth models with non-equilibrium prices. In Part III on economic growth, the question of decentralization is addressed from a different perspective. Part IV examines industrial organization - the effect of innovation incentives; the pros and cons of restrictions on firms entering an industry; and the question of competitive reward schemes within organizations. Finally, there are three studies in international economics: on the relationship between the terms of trade and the real income of an LDC which is trading with a developed country; the problems with traditional theories of devaluation when applied to LDCs; and the effects of free trade on unemployment.
