INTRODUCTION 15 I THE RECORD OF WESTERN GROWTH 25 The Growth of Output Movement in Population and Output per Head Labor Supply Total Labor Input Productivity Growth Comparative Levels of Productivity II THE REASONS FOR ACCELERATED GROWTH 43 The Impact of Demand Demand, Profits and Profit Factors on the Supply Side Recovery Elements Disguised Unemployment The American-European Productivity Gap Structural Changes in Expenditure and Output The Effect of European Integration The Role of Investment. III INVESTMENT AND GROWTH 76 The Pattern of Investment The Measurement of Investment General Influences Affecting the Productivity of Investment Capacity Use Replacement Capital Widening and Deepening The Nature of Technical Progress The Quality of Management and the Capacity to Absorb Investment Conclusions IV THE ROLE OF GOVERNMENT IN PROMOTING GROWTH 99 The Aims of Policy Managing the Level of Demand Public Spending The Management of Private Demand Conclusions on the Management of Demand Maintaining Competitiveness Conclusions on the Control of Prices Fostering the Growth of Output Potential Education and Research Incentives to Corporate Investment Tax Inducements to Personal Savings Government Influence on the Pattern of Private Investment Government Saving and Investment Other Measures Affecting the Allocation of Resources Planning The Process of Policy Formulation Conclusions V THE INTERNATIONAL ENVIRONMENT 158 The Structure of the World Economy The Nature of the Interdependence of Industrial Countries Trade, Trade Policy and Economic Growth Capital Movements as a Stabilizing and Destabilizing Force International Liquidity and Payments Arrangements Payments Problems Policy Weapons for External Equilibrium Conclusions APPENDICES 194 INDEX 243.