The purpose of this book is to give the reader an opportunity to develop a solid grounding of New Economic Growth Theory. The book highlights the textbook theory of New Growth Theory and how economic growth results from the increasing returns associated with new knowledge and new technology. Further points of view are introduced about how technology is the driver of economic growth and a discussion is presented on the aggregate supply and aggregate demand side. There are a number of practical implications from New Growth Theory and the book brings to light some of the things we should think about to formulate programs designed to stimulate economic growth. If we accept the theory, it should lead us to change our views on the importance of New Growth Theory. There are a number of lessons for economic development policy, and this book suggests some broad strategies that we should focus on; creating knowledge is central to economic development and macroeconomic policies can trigger...

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