Peter Henry on Growth, Development, and Policy

Peter Blair Henry talks with host Russ Roberts about economic development. Henry compares and contrasts the policy and growth experience of Barbados and Jamaica. Both became independent of England in the 1960s, so both inherited similar institutions. But each pursued different policies with different results. Henry discusses the implications of this near-natural experiment for growth and the importance of macroeconomic policy for prosperity. The conversation closes with a discussion of Henry's research on stock market reactions as a measure of policy's effectiveness.