Money and Capital in Economic Development

by Ronald I. McKinnon

Book Overview

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This books presents a theory of economic development very different from the ""stages of growth"" hypothesis or strategies emphasizing foreign aid, trade, or regional association. Leaving these aside, the author breaks new ground by focusing on the use of domestic capital markets to stimulate economic performance. He suggests a ""bootstrap"" approach in which successful development would depend largely on policy choices made by national authorities...

• Format: Paperback
• Language: English
• ISBN: 0815756135
• ISBN13: 9780815756132
• Release Date: March 1973
• Publisher: Brookings Institution Press
• Length: 200 Pages
• Weight: 0.60 lbs.
• Dimensions: 0.5" x 6.0" x 9.3"

Customer Reviews

Outstanding work of scholarship

This book, together with Shaw's, puts forth the idea that subsidized interest rates do not help in economic development, mainly because they bias the economy towards choosing not the most rentable projects, but the best political positioned. At the time it was published, this was absolutely in contradiction with development economics. Even today it is not widely accepted by policy-makers. It is essential reading in the literature of financial liberalization, as perhaps its seminal work.