Showing 1 - 4 of 4
A two-tiered exchange rate system can be interpreted as a set of separate taxes on money and other financial assets. If the official two-tiered exchange rate system coexists with a black market for foreign exchange, then there is implicit taxation of the international goods trade as well. This...
Persistent link: https://www.econbiz.de/10014398041
We address the question of whether growth and welfare can be higher in crisis prone economies. First, we show that … there is a robust empirical link between per-capita GDP growth and negative skewness of credit growth across countries with … countries with smooth credit conditions. We then present a two-sector endogenous growth model in which financial crises can …
Persistent link: https://www.econbiz.de/10011402539
financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of … paper starts by illustrating these opposing effects by, first, analyzing the dynamics of output growth and financial … intermediation around systemic banking crises and, second, showing that the growth enhancing effects of financial depth are weaker in …
Persistent link: https://www.econbiz.de/10011409380
growth, and find that it has a robust negative effect on GDP growth. This link coexists with the negative link between … variance and growth typically found in the literature. To explain the link between crises and growth we present a model where … weak institutions lead to severe financial constraints and low growth. Financial liberalization policies that facilitate …
Persistent link: https://www.econbiz.de/10002757563