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Financial Development and Economic Growth

Guidotti, Pablo Emilio - 1992

This paper examines the empirical relationship between long–run growth and the degree of financial development, proxied by the ratio of bank credit to the private sector as a fraction of GDP. We find that this proxy enters significantly and with a positive sign in growth regressions on a large...

Persistent link: https://www.econbiz.de/10014397886

Resilience in Latin America : lessons from macroeconomic management and financial policies

De Gregorio, Jose - 2013

This paper analyzes the unprecedented resilience of Latin American countries to the global financial crisis. It argues that sound macroeconomic conditions, which allowed an unusual monetary and fiscal expansion, exchange rate flexibility, a strong and well--regulated financial system, high level...

Persistent link: https://www.econbiz.de/10012667421

The Demand for Money in Developing Countries : Assessing the Role of Financial innovation

De Gregorio, Jose - 1991

account for the impact of financial innovation. We estimate money demand for ten developing countries employing various … proxies for the innovation process and provide an assessment of the relative importance of this variable. We find that … financial innovation plays an important role in determining money demand and its fluctuations, and that the importance of this …

Persistent link: https://www.econbiz.de/10014396070

How Does Foreign Direct Investment Affect Economic Growth

Lee, Jong-Wha - 1994

We test the effect of foreign direct investment (FDI) on economic growth in a cross-country regression framework, utilizing data on FDI flows from industrial countries to 69 developing countries over the last two decades. Our results suggest that FDI is an important vehicle for the transfer of...

Persistent link: https://www.econbiz.de/10014397552

Credit Markets and Stagnation in an Endogenous Growth Model

De Gregorio, Jose - 1993

This paper studies the effects that the inability of individuals to borrow against future income has on economic growth. The model assumes that human capital, which is accumulated through education, is the only factor of production. It is shown that liquidity constraints reduce growth. Further,...

Persistent link: https://www.econbiz.de/10014395778

Credit Markets with Differences in Abilities : Education, Distribution, and Growth

De Gregorio, Jose - 1994

This paper addresses the growth, welfare, and distributional effects of credit markets. We construct a general equilibrium model where human capital is the engine of growth and individuals differ in their education abilities. We argue that the existence of credit markets encourages...

Persistent link: https://www.econbiz.de/10014396004

Welfare Costs of Inflation, Seigniorage, and Financial innovation

De Gregorio, Jose - 1991

transaction costs, a fall in the costs of inflation is equivalent to financial innovation. This can be caused by paying interest … on deposits, indexing money, or “dollarizing.” Results indicate that financial innovation raises welfare in low inflation …

Persistent link: https://www.econbiz.de/10014396149

International Evidenceon Tradables and Nontradables Inflation

Wolf, Holger C. - 1994

Using 1970-85 sectoral data for the OECD we find that inflation in nontradable good exceeds inflation in tradables. We identify a demand shift towards nontradables and faster growth of total factor productivity in the tradable goods sector as the prime causes of the differential inflation. In...

Persistent link: https://www.econbiz.de/10014396317

Financial Markets and Inflation Under Imperfect Information

De Gregorio, Jose - 1994

This paper studies the effect of inflation on the operation of financial markets, and shows how the ability of financial intermediaries to distinguish among heterogenous firms is reduced as inflation rises. This point is illustrated by presenting a simple model where inflation affects firms’...

Persistent link: https://www.econbiz.de/10014397999

Theories of Policy Accommodation : The Persistence of Inflation and Gradual Stabilizations

De Gregorio, Jose - 1992

Persistent inflation and slow stabilization are usually the result of policy accommodation resorted to in an attempt to avoid the recessionary costs of a sharp reduction of inflation. This paper reviews three explanations for why policymakers, despite their dislike of inflation, may nevertheless...

Persistent link: https://www.econbiz.de/10014398462