Macroeconomic Constraints for Medium Term Growth and Distribution : A Model for Chile
The recovery of the Chilean economy since the mid 1980s, has certainly been successful in macroeconomic terms. In fact, the restoration of growth and the correction of external imbalances after the severe economic crises of 1982 -83 has taken place in a macroeconomic environment of moderate inflation, without major fiscal imbalances, exports have expanded significantly and foreign debt burden indicators have improved. However, distributive and poverty related indicators point to pending problems. The major challenge, therefore, is to maintain sustainable rates of economic growth, address the social issues of poverty reduction and improve income distribution patterns, while preserving macroeconomic and financial stability. The paper is organized as follows : Section I is an introduction. Section II presents a formal macroeconomic model that identifies major constraints ( external, savings and fiscal ) that shape the scope for growth. In Section III the model is numerically calibrated with parameters of the economy and three policy exercises are explored : i) an increase in public spending; ii) a reduction of interest payments of 3 of potential GDP; and iii) a reduction of the markup rate of 4. Section IV reviews various policy excercises and the conclusions are summarized in Section V
Year of publication: |
[2017]
|
---|---|
Authors: | Denizer, Cevdet |
Other Persons: | Desai, Raj M. (contributor) ; Gueorguiev, Nikolay (contributor) |
Publisher: |
[2017]: [S.l.] : SSRN |
Saved in:
freely available
Extent: | 1 Online-Ressource (48 p) |
---|---|
Series: | World Bank Policy Research Working Paper ; No. 400 |
Type of publication: | Book / Working Paper |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 30, 1990 erstellt |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012746945
Saved in favorites
Similar items by person
-
Political competition and financial reform in transition economies
Denizer, Cevdet A., (2006)
-
Finanční liberalizace a finanční represe v bývalých socialistických ekonomikách
Denizer, Cevdet A., (2000)
-
The political economy of financial repression in transition economies
Denizer, Cevdet, (1998)
- More ...