PHILIP ARESTIS Professor and University Director of Research, Cambridge Centre for Economic and Public Policy, University of Cambridge, UKMICHELLE BADDELEY Deputy Director, Cambridge Centre for Economic and Public Policy, University of Cambridge, UKAMIT BHADURI Professor of Economics, University of Pavia, Italy, and Visiting Professor, Council for Social Development, IndiaHEATHER BOUSHEY Research Economist, Centre for Economic and Policy Research (CEPR), and Research Affiliate, National Poverty Centre, Gerald R. Ford School of Public Policy, USAGERALDO ANGELES-CASTRO PhD Student and Teaching Assistant, Economics Department, University of Kent, UKSERGIO CESARATTO Professor of Economic Policy and Development Economics, University of Siena, ItalyENRICO SERGIO LEVRERO Assistant Professor, University of Roma Tre, ItalyÖZLEM ONARAN Associate Professor, Istanbul Technical University, Turkey and Visiting Faculty Member, Wirtschaftsuniversität Wien, AustriaTHOMAS I. PALLEY Chief Economist, U.S.-China Economic & Security Review Commission, USAMALCOLM SAWYER Professor of Economics, University of Leeds, UKTHORSTEN SCHULTEN Senior Researcher, Institute for Economic and Social Research (WSI), Hans Boeckler Foundation, GermanyANTONELLA STIRATI Associate Professor, University of Roma Tre, ItalyENGELBERT STOCKHAMMER Assistant Professor, Wirtschaftsuniversität Wien, AustriaCHRISTIAN WELLER Senior Economist, Centre for American Progress and Research Associate at theEconomic Policy Institute, USA

• List fo Tables and Figures Notes on the Contributors Introduction; E.Hein, A.Heise & A.Truger Labour Market Flexibility and Economic Expansion; A.Bhaduri The Causes of High Unemployment: Labour Market Sclerosis v Macroeconomic Policy; T.I.Palley Is Capital Stock a Determinant of Unemployment; P.Arestis, M.Baddeley & M.Sawyer Deflation Risks in Germany and the EMU: The Role of Wages and Wage Bargaining; E.Hein, T.Schulten & A.Truger The Influence of Unemployment, Productivity and Institutions on Real Wages Trends: The Case of Italy 1970-2000; E.S.Levrero & A.Stirati Unequal Fortunes, Unstable Households: Has Rising Inequality Contributed to Economic Troubles for Households in the USA?; H.Boushey & C.E.Weller The Effects of Economic Liberalization on Income Distribution: A Panel-data Analysis; G.Angeles-Castro Pensions and Distribution in an Aging Society: A Non-Conventional View; S.Cesaratto Do Profits Affect Investment and Employment? An Empirical Test Based on the Bhaduri-Marglin Model; Ö.Onaran & E.Stockhammer Class Conflict and the Cambridge Theory of Income Distribution; T.I.Palley The Dynamics of Profit and Wage-led Expansion: A Note; A.Bhaduri Index