Selected papers from the Second International Conference on the "Development in Economic Theory and Policy", held in Bilbao, July 7-8, 2005.

Includes bibliographical references and index.

Strong uncertainty and how to cope with it to improve action and capacity / Paul Davidson -- Inflation targeting: assessing the evidence / Alvaro Angeriz and Philip Arestis -- Transparency versus openness in monetary policy / Emmanuel Carre -- The dynamic analysis of monetary policy shock on banking behaviour / Edwin Le Heron -- Credibility of interest rate policies in eight European monetary system countries: an application of the Markov regime-switching of a bivariate autoregressive model / Philip Arestis and Kostas Mouratidis -- Why do firms hedge? A review of the evidence / Amrit Judge -- Concentration versus efficiency and financial liberalization in Latin American banking / Georgios Chortareas ... [et al.] -- The role of financial institutions in the context of economic development / Santonu Basu.