This is the fourth in a series of annuals from the National Bureau of Economic Research that are designed to stimulate research on problems in applied economics, to bring frontier theoretical developments to a wider audience, and to accelerate the interaction between analytical and empirical research in macroeconomics. Contributions to this 1989 edition include: The "Monetary History" After Twenty-Five Years: New Evidence on the Money-Output Relationship, Christina Romer and David Romer. Restrictions on Financial Intermediaries and Implecations for Aggregate Fluctuations: Canada and the U.S., 1870-1908, Stephen Williamson. The Thatcher "Miracle," Charles Bean with Jim Symons. The Revised NBER Indexes of Coincident and Leading Economic Indicators, James Stock and Mark Watson. Consumption, Income, and Interest Rates: The Euler Equation Approach Ten Years Later, John Campbell and N. Gregory Mankiw. U.S. Earnings and Income Inequality: Recent Trends, Frank Levy. Business Cycle Models with Increasing Returns, Kevin Murphy, Andrei Shleifer, and Robert Vishny. Olivier Blanchard and Stanley Fischer are both Professors of Economics at MIT.