Abstract This paper would discuss the effect of external debt on economic growth with four areas, the effect on private local investment, foreign direct investment, government expenditure and export growth. Three theoretical models are adopted, namely Debt Overhang Theory, Liquidity Constraint Hypothesis and Crowding-out Effect respectively. Two policy implications on debt relief and debt restructuring are analyzed. And finally, the paper will include the discussion on the necessary tradeoff with
Words: 3688 - Pages: 15
The World Bank notes PREM AUGUST 2009 N U M B E R 141 ECONOMIC POLICY The Global Financial Crisis: Comparisons with the Great Depression and Scenarios for Recovery Milan Brahmbhatt (PRMVP) and Luiz Pereira Da Silva (DECVP) A recent paper by Eichengreen and O’Rourke on “A Tale of Two Depressions” (publicized by Martin Wolf in the Financial Times) has highlighted some close correspondences between economic performance during the present world recession and that during the early months
Words: 4313 - Pages: 18
gross domestic product and the public spending, Lingering debate on required reforms and maintenance of the currency value to the economic growth. The paper claims that Canada Medicare is economically unsuitable. He addresses the need of evolved political economy, reduced spending on medicine, physician services, and sustainability in the government fiscal reforms (Robert 23). The Impact of Corruption in Provision of Healthcare Services The data provided by the provincial and the federal finance department
Words: 850 - Pages: 4
these contagious crises does not infect all neighboring economies—only those vulnerable to a crisis themselves. In this paper, we examine the conditions under which an economy can become vulnerable to a currency crisis. We review three models of currency crises, paying particular attention to the events leading up to a speculative attack, including expectations of possible fiscal and monetary responses to impending crises. Specifically, we discuss the symptoms exhibited by Russia prior to the devaluation
Words: 6882 - Pages: 28
Rick in the Auto Industry Macroeconomics Paper Shawna Gulledge 04/06/2014 ECON 545: Business Economics Professor Stephenson Introduction My friend, Rick, has been in the auto industry for quite some time now. He runs a small company where they manufacture auto parts. Rick wants to expand his business to fill the need of increasing demand from multiple car manufacturers. He wants to be smart about the timing for when to buy and when to sell, or when to expand or when to hold back. The economy
Words: 1695 - Pages: 7
exchange rates, interest rates, etc) determined and interact with each other? What are the effects of fiscal and monetary policies? The Mundell-Fleming model is the standard open macroeconomic model that tries to answer these questions. Most open macro economy models in the textbooks are variations of the Mundell-Fleming model. Theoretically, it is the most popular model. But its applicability to actual policy making is not as high as we would hope (especially for developing and transition countries). Blind
Words: 2962 - Pages: 12
Macroeconomics Assignment How a rigid Fiscal Policy saved Australia from the Global Financial Crisis TABLE OF CONTENTS: |Item |Heading |Page Number | |1. |Introduction | | |2. |Theoretical Concepts:
Words: 3759 - Pages: 16
Central Asia Department At the Pakistan Development Forum Islamabad, March 17-19, 2004 I. Introduction 1. The 2004 Pakistan Development Forum (PDF) provides a timely opportunity to discuss Pakistan's recently finalized Poverty Reduction Strategy Paper (PRSP) "Accelerating Economic Growth and Reducing Poverty: The Road Ahead." Last week the IMF Executive Board endorsed Pakistan's PRSP as a comprehensive and feasible poverty reduction strategy, and a good framework for further reform after the expiration
Words: 2145 - Pages: 9
the nature of the national environment in which business operate (Unit 1, L02) Explain how economic systems attempt to allocate resources effectively 2.1 Access the impact of fiscal and monetary policy on business organizations and their activities 2.2 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organization 2.3 Assessor’s additional feedback and comments (attached additional sheets if required)
Words: 3625 - Pages: 15
discipline to economic policy that quickly brought inflation down, managed foreign debt, but more importantly, attracted foreign investment through financial liberalization. As massive inflows of foreign investment poured into the country, problems soon arose with regulation and oversight. These structural weaknesses created instability and ultimately multiplied the effects of the Asian Financial Crisis in 1997. With strong encouragement of the IMF, Indonesia adopted a set of policies to protect currency
Words: 4046 - Pages: 17
