We explain the rapid increase in personal savings in China since the economic liberalization which began in 1979. We use an intertemporal disequilibrium framework based upon a virtual price technique. The virtual price is defined as the price level that would induce the observed level of...

This paper examines possible ways for a developing country to finance budget deficits by drawing on domestic resources. We do so by analyzing Pakistan's National Savings Scheme (NSS). The NSS has a number of unusual attributes, and its impact upon the economy of Pakistan is not clear. Given...

This paper examines possible ways for a developing country to finance budget deficits from domestic resources. It does so by analyzing Pakistan's National Savings Scheme (NSS). The NSS has a number of unusual attributes, and its impact upon the economy of Pakistan is not clear, but given...