This essay examines the role that expectations play in economic development and the efficacy of international development assistance programs. Because specialists within the development community tend to hold and perpetuate naively optimistic expectations about their programs, they fail to...

Available evidence supports the view that growth is faster in more open economies. In order to analyze the implications of openness and growth on determinacy and learnability of worldwide rational expectations equilibria we develop a two-country New Keynesian model with growth. We analyze these...