This book adresses an important but inadequately recognized dimension of the activities of the modern state - the role it plays in producing the theoretical and practical knowledge necessary for economic policy-making. The traditional assumption, which this collection of essays challenges, is that despite this profound dependence governments have generally acted as passive consumers of whatever ideas economists in the private sector and professions had to offer. This book brings together papers from an Anglo-American conference, held at the Woodrow Wilson International Center for Scholars, that reveal the ways in which modern states have helped to generate new economic changes, specific political institutions, and ideological contexts. The approach is comparative, focusing on developments in modern Great Britain and the United States.