Many newly emerging markets need to increase resources available for investment. The first section of this paper shows that government deficits reduce national saving and growth. Furthermore, greater reliance in inflationary finance, financial repression and foreign borrowing as ways for...

Using Indonesia as a study case, this paper analyses the relationship between the actual real exchange rate, and other macroeconomic variables. The estimate shows that, out of nine independant explanatory variables, only government consumption and the fiscal deficit have significant effects on...