Date of Original Version



Response or Comment

Abstract or Description

Randall Wright has several complimentary things to say about some of my earlier work. I thank him for those remarks. Most of his comment, however, fails to respond or even discuss my current paper, and the main comments he makes about the paper are untrue.

Contrary to Wright my paper does not attack theory or oppose the development of micro foundations for macroeconomics. It is not about economic policy. Nor do I defend the IS-LM model that I spent many years criticizing. I am at a loss to understand how a reader could come away with such ideas or with a belief that I am critical of recent work on economic development and growth.


prepared for Federal Reserve Bank of Kansas City. November 1994.