Production-function decompositions of this growth spurt suggest that a good 30 to 40 percent of it has been due to so-called capital-deepening productivity change, reflecting increases in the economy's capital-labor ratio. Fiscal policy is relevant because it helps determine the national saving that finances this capital investment. National saving can be generated privately, by households and business, or by government.
(As you can tell, John has always had a penchant for catchy titles.) Beyond its important technical contributions, this work showed that the insights and methods of the rational expectations revolution could be applied to models with sticky wages and prices. That observation has proved enormously influential in subsequent policy research.