Description |
1 online resource (33 pages) : illustrations |
Series |
IMF working paper ; WP/07/278 |
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IMF working paper ; WP/07/278.
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Summary |
This paper analyzes certain policies that are typical of a number of rapidly growing East Asian countries in which a fixed exchange rate, combined with a surplus labor market, has made domestic assets relatively inexpensive, generating high rates of FDI as well as domestic capital formation. This "investment hunger" can lead to unanticipated declines in the returns to investment, and resulting financial insolvencies. Private consumption remains low and there are concerns that high savings rates cannot be sustained. We construct a dynamic general equilibrium model and apply it to a stylized Asian economy, loosely based upon China. We calibrate a benchmark equilibrium, and carry out various counterfactual simulations to analyze alternative policies, in particular tax cuts and exchange rate revaluations, as instruments in increasing private consumption while avoiding bank failures |
Bibliography |
Includes bibliographical references (pages 32-33) |
Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
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digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
Subject |
Investments, Foreign -- East Asia -- Econometric models
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Investments, Foreign -- China -- Econometric models
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Economic history
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Economic policy -- Econometric models
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Investments, Foreign -- Econometric models
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SUBJECT |
East Asia -- Economic conditions -- Econometric models
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China -- Economic conditions -- Econometric models
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East Asia -- Economic policy -- Econometric models
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China -- Economic policy -- Econometric models
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Subject |
China
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East Asia
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Form |
Electronic book
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Author |
Rochon, Céline, 1972- author.
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Shamloo, Maral, author.
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IMF Institute, issuing body.
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International Monetary Fund, issuing body.
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ISBN |
1283516527 |
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9781283516525 |
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