This is the second book on growth theory. It supplements the previous one with two new contributions: Disproving Barro and Sala-i-Martin; Introducing prices into growth theory.

Barro and Sala-i-Martin claimed to have derived some phase-diagram to illustrate their steady-state loci for capital and consumption. This book first shows what phase-diagram and capital steady-state locus should be. Consumption steady-state simply does not exist.

Secondly, existing growth models restricted themselves to the real side of the story, but such practice makes the growth equation inconsistent. This book also fixes this failure.