We also find that the thresholds are lower for foreign direct investment and portfolio equity liabilities compared to those for debt liabilities. These differences are indicative of labor market rigidities that raise aggregate unemployment and hinder adjustment to shocks. It examines the composition of national saving, analyzes what forces drive saving rates, and draws policy conclusions from the analysis that are relevant for the economies in the region and which might play an important part in rebalancing global growth. The traditional risks faced by emerging market economies, especially those related to having an open capital account, do not loom large in the case of China. It has, however, limited the macroeconomic tools available to the government to counter the effects of cyclical shocks and structural shifts.
The paper investigates a number of possible explanations for the stability of the wage structure and concludes that it is attributable to institutional factors rather than market forces. We reexamine this relationship in the context of globalization—a term typically used to describe the phenomenon of growing international trade and financial integration that has intensified since the mid-1980s. Copyright 2000 by Oxford University Press. The share of the manufacturing sector in total employment has declined steadily while the share of service sector employment has trended upward. We show that the optimal monetary policy depend on country income level. In this paper, we develop a unified empirical framework for characterizing such threshold conditions. U suštini, rad ukazuje da su indirektni efekti finansijske globalizacije na razvoj finansij- skog sektora, institucija, vladanje i makroekonomsku stabilnost, po svoj prilici daleko bitniji od bilo kog direktnog uticaja putem akumulacije kapitala ili diversifikacije portfo- lia.
I propose a mechanism for global liquidity insurance that would meet emerging markets' demand for insurance with fewer domestic policy distortions while facilitating a quicker adjustment of global imbalances. In this paper, we develop an aggregation procedure using time-varying weights for constructing the common component of international economic fluctuations. In fact, real wages and unit labor costs are found to be similar across provinces, despite large and persistent geographic unemployment differences. China now ranks as the sixth largest economy in the world at market exchange rates. While China is actively promoting the internationalization of its currency, it is a long way from attaining full convertibility or meeting other prerequisites for achieving reserve currency status. In addition to the cross-country evidence, the paper includes detailed case studies of two euro countries where regional disparities in unemployment are striking-Italy and Spain. Using an error components decomposition, industry-specific shocks are found to be relatively more important in explaining fluctuations in employment growth.
We review the large literature on various economic policies that could help developing economies effectively manage the process of financial globalization. Indeed, it argues that the indirect effects of financial globalization on financial sector development, institutions, governance, and macroeconomic stability are likely to be far more important than any direct impact via capital accumulation or portfolio diversification. The tectonic scenario is comparable with a continent-continent collision type accretionary tectonics. Finally, we discuss the sequencing of reforms to separate the conduct of monetary and fiscal policies. This applies to the paper by Anand and Prasad 2010 which proposes a model of a closed developing economy in which food producers are credit constraints. Similarly, macroeconomic stability appears to be an important prerequisite for ensuring that financial globalization is beneficial for developing countries.
However, while there is a vast empirical literature analyzing the impact of financial openness on output growth, far less attention has been paid to its effects on productivity growth. We provide a rough estimate of the amendments necessary on the revenue and expenditure sides in order to keep the current system financially balanced. It is not a substitute for other necessary policies such as strengthening of the domestic financial sector or, in some cases, greater exchange rate flexibility. Integration with the global economy, along with sound macroeconomic and institutional structures, may help small states attain higher output growth. Using a variety of empirical techniques, we conclude that there is at best a modest degree of international risk sharing, and certainly nowhere near the levels predicted by theory.
What can be learned from cross-country studies and from experiences of individual countries that have adopted different approaches? This paper studies the sources of fluctuations in Canadian employment growth disaggregated by province and, within each province, by one-digit industry. China's traditional approach to reform has been incremental but, in view of its rapid opening up to the world economy, a more concerted and multifaceted approach to the reform process will be crucial to maintain rapid growth and manage the challenges associated with the process of global integration. Reforms of the banking and state enterprises will have to be combined with measures to tackle rising unemployment, poverty and widening regional disparities in income. However, earnings inequality did increase markedly after the transition and the relative well-being of different socio-economic groups was altered. Analyses of structural fabrics establishes oppositely verging nature of the Moyar and Bhavani shear zone and may suggest a doubly vergent orogenic development, with the former as prowedge and the latter as retrowedge. Tracing cohorts over time indicates a virtual absence of consumption smoothing over the life cycle.
Second, the implementation of orthodox labour market and welfare state reforms created a flexible labour market at the lower end. Regional unemployment in Europe is the focus here. Takav pogled objašnjava neuspeh istraivanja zasnovanih na regresijama rasta izme- đu zemalja u pronalaenju pozitivnih efekata finansijske globalizacije, usmeravajući se na novije, potencijalno korisnije i ubedljivije pristupe. India's authorities have taken a cautious and calibrated path to capital account opening, which has served the economy well in terms of reducing its vulnerability to crises. This timely set of studies looks at the turmoil in global financial markets, which coupled with volatile inflation poses serious challenges for central banks in these countries. Peak high-P granulite facies metamorphism and post-peak long residence period of the studied quartzofeldspathic gneiss at deep crustal level suitably fit into the Neoarchean crustal dynamics resulting in crustal thickening, in the order of ~ 41 km, within the Nilgiri Block.
In this paper, we develop a two-sector two-good closed economy new Keynesian model to study the optimal choice of price index in markets with financial frictions. The results, based on micro data from the 1985-92 Household Budget Surveys, indicate that overall income inequality increased during the initial stages of the transition but then declined to pre-transition levels. Since unification, the debate about Germany's poor economic performance has focused on supply-side weaknesses, and the associated reform agenda sought to make low-skill labour markets more flexible. We describe a general Taylor series method for computing asymp-totically valid approximations to deterministic and stochastic rational expectations models near the deterministic steady state. For example, Catao and Chang 2010 explore the role food prices play in determining what price index a central bank should stabilize in a small open economy. In addition, only industrial countries have attained better risk sharing outcomes during the recent period of globalization.