1. Growth
Spring 2013
Topic 6

2. What is growth?
Short-run
Expansion in GDP
Long-run
Expansion in productive potential

3. Sources of short-run
growth
Business cycle fluctuations
Fiscal and monetary policy

4. Sources of long-run
growth
Factors of production

5. Growth stories
Why don’t resources matter?
The special case of “Dutch Disease”

6. Growth stories
Why savings might matter?

7. Growth stories
Why savings might matter?

8. Growth stories
Why savings might matter?
Catch-up model of growth
Production function
Diminishing marginal returns

9. Growth stories
Why savings might matter?
Managing the transition

10. Growth stories
Why savings might matter?
Lessons for the US?
Innovation
Does it matter whose savings?

11. Growth stories
Population and growth
Positive factor

12. Growth stories
Population and growth
Negative factors
Thinning of the capital stock
Dependency