"As a territory of the United States, Puerto Rico operates under U.S. judicial, monetary, and tariff systems. Despite sharing these key U.S. institutions, however, the region's economy has stalled. Since the 1970s, the island has experienced economic stagnation, large scale unemployment, and a widening income gap relative to the mainland. Here, economists from Puerto Rico and the United States address the major policy issues-labor supply and demand, entrepreneurship, the fiscal situation, financial markets, and trade-at the heart of Puerto Rico's economic difficulties." "While many studies have analyzed the implications of Puerto Rico's political relationship with the United States, The Economy of Puerto Rico focuses on the island's economic development. The contributors to this innovative book assess Puerto Rico's past experience with various growth policies. They analyze reforms and new initiatives for increasing employment, encouraging private sector development, improving education, upgrading infrastructure, and fixing government finance. They conclude by presenting policy recommendations and proposing a strategy to jump-start economic growth in Puerto Rico. Book jacket."--BOOK JACKET.