This is the fifth in a series of annuals from the National Bureau of Economic Research that are designed to stimulate research on problems in applied economics, to bring frontier theoretical developments to a wider audience, and to accelerate the interaction between analytical and empirical research in macroeconomics.Olivier Blanchard and Stanley Fischer are both Professors of Economics at MIT.Contributors: Ricardo Caballero, Guiseppe Bertola. Andrew Caplin, Robert Hall. Gur Ofer. Abram Bergson, Martin Weitzman. Francesco Giavazzi, Marco Pagano. Allan Drazen, Martin Feldstein. Steven Davis, John Haltiwanger. Katharine Abraham, Robert Townsend. Mark Bils. Andrew Oswald, Gary Hansen. Robert Barro, Xavier Sala i Martin. William Brainard, Robert Lucas.