In Gunnar Myrdal's doctoral dissertation, published in 1927, he examined the role of expectations in price formation. His analysis strongly influenced the Stockholm school. He built on Knut Wicksell´s theories of Cumululative Causation of endogenous money and contributed to developed this ideas, and stressed the importance of Knightian uncertainty and Ex ante and Ex post expectations role in the economic process.
Between 1925 and 1929, he studied in Britain and Germany. He was a Rockefeller Fellow and visited the United States in 1929-1930. During this period, he published his first books, including The Political Element in the Development of Economic Theory. Returning to Europe, he served for one year as Associate Professor in the Graduate Institute of International Studies, Geneva, Switzerland