Psychological View of Investment & Essay

" (Grabel, 2004) Good institutions serve as the basis for economic growth due to right market-based and market-guided incentives being created which include those stated in this study and specifically: (1) rule of law; (2) competitive markets; (3) low taxation (4) noninflationary monetary policies; and (5) free trade. (2002) Good institutions serve to "Foster other cultural patterns of conduct, hard work, savings and industriousness, honesty and trustworthiness, creativity, and self-responsibility. These are the bases of the wealth of nations." (Easterly, 2002; as cited in: Ebeling, 2002) These tools are helpful in avoiding and mitigating economic risks in development.

Bibliography

Easterly, W (2002) the Elusive Quest for Growth: An Economists Adventures and Misadventures in the Tropics (Cambridge, MIT Press) Chapter 2

Krueger, a.O (1998) Why Trade Liberalization Is good for Growth, Economic Journal 108

Demetriades, P. And Hussein, K.A (1996) Does Financial Development Cause Economic Growth? Time-Series Evidence From 16 Countries, Journal of Development Economics 51, pp387-411.

Grabel, I. (2003) International Private Capital Flows and Developing Countries, in H-J. Chang (ed.) Rethinking Development Economics, London: Anthem Press.

Stiglitz, J. (1993) the Role of the State in Financial Markets, Proceedings of the World Bank Annual Conference on Development Economics, pp.19-52.

Garcia, Frank (2005) Trade Justice and Security. Boston College Law School. 9 Sept. 2005. Research Paper. Social Science Research Network.

Grabel, Ilene (2004) Trip Wires and Speed Bumps: Managing Financial Risks and Reducing the Potential for Financial Crises in Developing Economies G-24 Discussion Paper Series. Intergovernmental Group of 24. No. 33 November 2004.

Ebeling, Richard M. (2002) Book.....