Peter Henry, “Growth, Development, and Policy” (MP3 audio), Econtalk, 2009/07/27

Some of the best ways to understand economics is via economic history.

Peter Blair Henry of Stanford University talks with EconTalk 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 very different results.

Henry discusses the implications of this near-natural experiment for growth generally and the importance of macroeconomic policy for achieving prosperity.

The conversation closes with a discussion of Henry’s research on stock market reactions as a measure of policy’s effectiveness.

Peter Henry on Growth, Development, and Policy | EconTalk | Library of Economics and Liberty

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