He claims that in the environment of late Victorian Britain, "it is more plausible to assume that supply created its own demand rather than demand creating its own supply". ... Crafts goes on to claim that even using McCloskey's own model "with its strong restrictive assumptions", that an investment rate of 12%, similar to those of the US and Germany, would cause a 25% rise in consumption expenditure. ...
In the current challenging economic environment, our work is a critical reminder of the importance of sound structural economic fundamentals for sustained growth. ... First Pillar - Institutions The institutional environment is determined by the legal and administrative framework within which individuals, firms, and governments interact to generate wealth. The importance of a sound and fair institutional environment has become all the more apparent during the recent economic and financial crisis and is especially crucial for further solidifying the fragile recovery, given the increasing role ...
