Leading world scholars analyze a range of specific departures from general equilibrium theory which have significant implications for the macroeconomic analysis of both developed and developing economies. Jacques Dreze considers uncertainty and incomplete markets and Nobel Laureate Robert Solow relates growth theory to the macroeconomic framework. Other issues examined are the implications for macro-policy of new research, including Joseph Stiglitz's warning on the misplaced zeal for financial market liberalization which partly engendered the East Asian and Russian crises.

In instituting its prospective studies the European Cultural Founda tion has to some extent gone against tradition. Until now those who were deeply committed to the idea of a European Community looked into the past rather than into the future for bases on which the com munity could be integrated. However, if we want a European society to become a reality it must be built on the basis of shared fundamental values. The majority of publications dealing with a unified or inte grated Europe have until now accepted that this foundation guarantee ing the stability of a future European society should...