For instance, sharp unexpected cuts in interest rates might lead market participants to expect more cuts in the future. They might also fuel expectations that the central bank has more (negative) information on the underlying economic developments or on financial market risks than market participants. This might aggravate pessimistic  13  See Ruge-Murcia (2004) for analogous evidence for the G7 countries.
A classic attempt to generalize about the policies that best promote economic growth and development, and a useful starting point for discussion, is the so-called Washington Consensus, articulated by the economist John Williamson in 1990.4 Writing about Latin America, Williamson outlined a list of 10 broad policies to promote economic development that he judged as commanding, at the time he wrote, substantial support between both economists and policymakers.