E. Phelps - Böcker

A crucial issue in the era of globalization and internationalization, is whether the relationship between investment and finance is beneficial to growth and development. Received wisdom is that research and development is essential not only for maintaining productivity, but also for competing in the marketplace. Similar questions have been raised about education and its rate of "social return"; is education necessary for improving the skill of the workforce, or does it serve primarily to facilitate the adoption of these technologies? This book brings together international scholars to analyse the importance of education, research and human capital and the impact of financial systems on growth and development.

Growing out of a conference on Expectations Formation and Economic Disequilibrium held in New York City in 1981, the papers in this volume provide a complex view of market processes in which individual rationality is no guarantee of convergence to the 'correct' model and the equilibrium coordination of agents' plans. They reject the 'optimality' argument for the rational expectations hypothesis, opening the door to other hypotheses of optimal expectations of agents in the decentralized market economy.

A crucial issue in the era of globalisation and internationalization, is whether the relationship between investment and finance is beneficial to growth and development.