This volume explores the measurement of economic and social progress in our societies, and proposes new frameworks to integrate economic dimensions with other aspects of human well-being. Leading economists analyse the light that the recent crisis has shed on the global economic architecture, and the policies needed to address these systemic risks.

Introduction PART I: THE MEASURE OF SOCIAL WELFARE On The Measurement of Social Progress and Well Being; J.Fitoussi & J. Stiglitz The Role of Statistics in the United States' Economic Future; J.Landefeld & S.Villones Measuring Equitable and Sustainable Wellbeing in Italy; E.Giovanni & T.Rondinella PART II: MACROECONOMIC THEORY AND POLICY: FINANCIAL FRICTIONS AND AGGREGATE ECONOMIC ACTIVITYLiquidity Shocks and Asset Prices in the Business Cycle; S.Shi A Mechanism Design Approach to Financial Frictions; N.Kiyotaki Bank Lending and Credit Supply Shocks; S.Gilchrist & E.Zakrajsek PART III: INTERNATIONAL MACRO THEORY AND POLICY: INTERCONNECTIVITY AND GLOBAL EXTERNALITIES Sectoral Imbalances and Long Run Crises; D.D.Gatti , M.Gallegatti , B.Greenwald , A.Russo & J.Stiglitz The Race to Zero; A.Haldane Capital Flows, Crisis and Externalities; A.Korinek Whither Capitalism? Financial Externalities and Crisis; M.Miller & L.Zhang PART IV: THE FUTURE OF CORPORATE TAXATION IN A GLOBALIZED ECONOMY How Should Income from Multinationals be Taxed?; R.Gordon Taxing Multinationals in a World with International Mergers and Acquisitions: Should the Home Country Exempt Foreign Income?; J.Wilson PART V: FINANCIAL INSTITUTIONS AND BEHAVIOUR System Risk and Macroprudential Regulation; F.Allen & E.Carletti Filling the Gaps: The Vienna Initiative and the Role of the International Financial Institutions in Crisis Management and Resolution; E.Berglof Financial Structure and Economic Development: Recent New Progresses; J.Lin & L.Xu A Model of Private Equity Fund Compensation; W.Choi , A.Metrick & A.Yasuda