What major insights have emerged from development economics in the past decade, and how do they matter for the World Bank? This challenging question was recently posed by World Bank Group President David Malpass to the staff of the Development Research Group. This paper assembles a set of 13...

1. Introduction -- 2. Macroeconomic Indicators -- 3. Market Structures -- 4. Major Actors in Contemporary Markets -- 5. Demand and Supply -- 6. Economic Equilibrium -- 7. Economic Cycles -- 8. Disequilibrium and Unemployment -- 9. Disequilibrium and Inflation -- 10. Government Intervention in...