on February 16, 2003
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.