This book deals with international growth, featuring the dynamics of foreign debt and domestic capital. It proves useful to consider the Solow model, the overlapping generations model and the infinite horizon model.
Phase diagrams serve to trace out the processes of adjustment induced by various shocks.
Take for instance an increase in the saving rate, a rise in the rate of labour growth, or a one-time technical progress. The first chapter is concerned with the small open economy, chapter II is on large countries.