permanent component of the terms of trade may lead to higher rates of private savings. Agénor and Aizenman examine the extent to … which permanent terms-of-trade shocks have an asymmetric effect on private savings. Using a simple three-period model, they … long trough rather than a sharp peak), savings rates will respond asymmetrically to favorable movements in the permanent …

savings and investments were taxed in an arbitrary and unpredictable way, the credibility of a new regime could not be assumed …