Chapter 15 Finance and Fiscal Policy for Development
|
|
- Sherman Adams
- 6 years ago
- Views:
Transcription
1 Chapter 15 Finance and Fiscal Policy for Development
2 Finance and Fiscal Policy 1. Financial System 2. Tax Revenues 3. State Owned Enerprises 15-2
3 1. Financial System a) Role(s) of Financial System b) Central Banks c) Microfinance 15-3
4 a) The Role of the Financial System in Economic Development Six major functions of the financial system Providing payment services Matching savers and investors Generating/distributing information Allocating credit efficiently Pricing, pooling, and trading risks Increasing asset liquidity US: Commercial Banks, Investment Banks, Stock and Bond Markets, Angel Funds 15-4
5 How DC Financial Systems are Different from Rich Countries Smaller relative to GDP many people have little or no contact: not even account Poor rely on money lenders with high interest rates Fewer sources of Entrepreneurial funding: => Banks do more risky lending Development Banks are common Rely on family funding => family empires Less/more regulatory apparatus 15-5
6 15.4 Reforming Financial Systems Investment is negatively related to borrowing costs, i.e. interest rates, so => Keep interest rates low to promote growth Right? 15-6
7 Figure 15.1 The Effects of Interest-Rate Ceilings on Credit Allocation 15-7
8 15.4 Reforming Financial Systems Below market interest rate (often negative in real terms)=> Reduces saving and thus Investment (International capital flows notwithstanding) Rations loans to less risky (richer) borrowers Reform: Deregulate interest rates => More Credit available to more people Chile: Problems when banks owned other industries, which failed 15-8
9 15.4 Reforming Financial Systems (cont d) Financial policy and the role of the state Stiglitz: seven financial market failures: The public good nature of monitoring financial institutions Externalities of monitoring, selection, and lending Externalities of financial disruption Missing and incomplete markets 15-9
10 15.4 Reforming Financial Systems (cont d) Financial policy and the role of the state Stiglitz: seven financial market failures (cont d): Imperfect competition Inefficiency of competitive markets in the financial sector Uninformed investors Of course, Government owned banks fail too (China) Government regulation fails too (USA) 15-10
11 15.2 The Role of Central Banks and Alternative Arrangements Functions of a full-fledged central bank Issuer of currency and manager of foreign reserves Banker to the government Banker to domestic commercial banks Regulator of domestic financial institutions Operator of monetary and credit policy 15-11
12 Wide range of arrangements and performance in DCs Often, chronic inflation, typically to finance government spending > tax revenue Use Currency board Currency of another country (Ecuador) Cannot (de-)stabilize domestic economy 15-12
13 15.3 Informal Finance and the Rise of Microfinance Financial services to people with no access or only with very unfavorable terms. Includes microcredit, microsavings, and microinsurance Primary focus: Very small loans for microenterprises steadily increase when loans are repaid Other alternatives to joint liability 15-13
14 15.3 Informal Finance and the Rise of Microfinance Microcredit often uses group lending schemes (joint liability) Provides collateral of peer pressure to jointly repay An alternative without joint liability: dynamic incentives, in which loan sizes 15-14
15 Potential limitations of microfinance as a development strategy Does not reach the poorest Does not address other development issues Human capital Infrastructure Institutional Quality ( Good government) Trade Policy SOEs Not a panacea 15-15
16 2. Fiscal Policy for Development Purpose: Finance government expenditures, many of which are Investments Infrastructure Health and Education A Mix of Current Revenues and Borrowing is appropriate But Borrowing is only justified for productive Investments!!!!! 15-16
17 Table 15.2 Comparative Average Levels of Tax Revenue, , as a Percentage of GDP 15-17
18 Table 15.3 Comparative Composition of Tax Revenue, , as a Percentage of GDP 15-18
19 DC taxes in comparison with rich countries Lower, as a percentage of income More reliance on indirect taxes versus direct (income and property) taxes Why: Difficulty collecting direct taxes in subsistence rural economy and informal sector What taxes did US rely on in 1800? 1900? 15-19
20 3. State-Owned Enterprise and Privatization State-owned enterprises (SOEs) corporations owned and operated by the government. 7-15% of GDP Banking, telephones, heavy industry (autos), ag marketing and inputs US? Why: Response to monopoly (esp foreign) Russia (apparently) succeeded 15-20
21 3. Problems with SOEs Lose money, 1-3% of GDP, year after year Loss to taxpayers and/or education/health Low levels of economic efficiency Low labor and capital productivity Less employment cuz excessive capital intensity Why: Politics (think US Post Office) Bureaucracy and Corruption 15-21
22 3. Privatization of SOEs: Results Greater efficiency and output (often) SOE assets stolen through corrupt privatization processes (Russia) Public monopoly replaced by private Inefficient SOEs laid off many workers (Poland) Mixed results on e.g. Municipal water supply 15-22
23 15.7 Public Administration: The Scarcest Resource Administrative capability is a scarce public resource in the developing world The administrative component of economic development should not be underestimated 15-23
24 Concepts for Review Central bank Commercialization Currency board Currency substitution Development banks Direct taxes Financial liberalization Financial repression Group lending schemes Indirect taxes Informal finance Microfinance Monetary policy Money supply Organized money markets 15-24
25 Concepts for Review (cont d) Privatization Rationing Rotating savings and credit associations (ROSCA) State-owned enterprises (SOEs) Transparency (financial) Unorganized money market 15-25
Financial markets in developing countries (rough notes, use only as guidance; more details provided in lecture) The role of the financial system
Financial markets in developing countries (rough notes, use only as guidance; more details provided in lecture) The role of the financial system matching savers and investors (otherwise each person needs
More informationInformal Financial Markets and Financial Intermediation. in Four African Countries
Findings reports on ongoing operational, economic and sector work carried out by the World Bank and its member governments in the Africa Region. It is published periodically by the Knowledge Networks,
More informationDevelopment Economics 855 Lecture Notes 7
Development Economics 855 Lecture Notes 7 Financial Markets in Developing Countries Introduction ------------------ financial (credit) markets important to be able to save and borrow: o many economic activities
More informationDevelopment Economics 455 Prof. Karaivanov
Development Economics 455 Prof. Karaivanov Notes on Credit Markets in Developing Countries Introduction ------------------ credit markets intermediation between savers and borrowers: o many economic activities
More informationEx ante moral hazard on borrowers actions
Lecture 9 Capital markets INTRODUCTION Evidence that majority of population is excluded from credit markets Demand for Credit arises for three reasons: (a) To finance fixed capital acquisitions (e.g. new
More informationADVERSE SELECTION PAPER 8: CREDIT AND MICROFINANCE. 1. Introduction
PAPER 8: CREDIT AND MICROFINANCE LECTURE 2 LECTURER: DR. KUMAR ANIKET Abstract. We explore adverse selection models in the microfinance literature. The traditional market failure of under and over investment
More informationRecommendations for Proportionate Regulation and Supervision of Microfinance. Thursday, 13 January, 2011 UNCITRAL Colloquium on Microfinance
Recommendations for Proportionate Regulation and Supervision of Microfinance Thursday, 13 January, 2011 UNCITRAL Colloquium on Microfinance Outline of discussion I. The Basics II. Prudential Regulation
More informationShadow Banking in China: Implications for Financial Stability and Economic Rebalancing
Shadow Banking in China: Implications for Financial Stability and Economic Rebalancing Prepared for Economics Seminar, Portland State University, May 22, 2015 Yan Liang Willamette University Outline 1.
More informationThe Financial System. Sherif Khalifa. Sherif Khalifa () The Financial System 1 / 52
The Financial System Sherif Khalifa Sherif Khalifa () The Financial System 1 / 52 Financial System Definition The financial system consists of those institutions in the economy that matches saving with
More informationDevelopment Economics
Development Economics Development Microeconomics (by) Bardhan and Udry Chapter 7 Rural credit markets [1] Importance Smoothing consumption in an environment where production is risky and insurance markets
More informationThe Financial Sector Functions of money Medium of exchange Measure of value Store of value Method of deferred payment
The Financial Sector Functions of money Medium of exchange - avoids the double coincidence of wants Measure of value - measures the relative values of different goods and services Store of value - kept
More informationTrade and Development. Copyright 2012 Pearson Addison-Wesley. All rights reserved.
Trade and Development Copyright 2012 Pearson Addison-Wesley. All rights reserved. 1 International Trade: Some Key Issues Many developing countries rely heavily on exports of primary products for income
More informationBelarusian Industrial Sector: Performance, Trends and Issues. Belarus Economic Policy Note July 8, 2010, Minsk
Belarusian Industrial Sector: Performance, Trends and Issues Belarus Economic Policy Note July 8, 2010, Minsk Outline Industrial performance in 2005-08: sources of growth Below the surface: warning signs
More informationA Model of China s State Capitalism
A Model of China s State Capitalism By Xi Li (HKUST) Xuewen Liu (HKUST) Yong Wang (HKUST) Discussant: Jian Wang Federal Reserve Bank of Dallas June 2012 Growing like China (Song et al. 2011 AER) Puzzling
More informationIntroduction to Factor Markets in the PAM
Slide 1 Introduction to Factor Markets in the PAM Scott Pearson Stanford University Lecture Program Scott Pearson is Professor of Agricultural Economics at the Food Research Institute, Stanford University.
More informationIntroduction to Factor Markets in the PAM
Slide 1 Introduction to Factor Markets in the PAM Scott Pearson Stanford University Scott Pearson is Professor of Agricultural Economics at the Food Research Institute, Stanford University. He has participated
More informationRelationship Among a Firm Issuing Securities, the Underwriters and the Public
Investment Companies Relationship Among a Firm Issuing Securities, the Underwriters and the Public Four Phase of IPO The objectives of the chapter are to provide an understanding of: o o o o o o The market
More informationBorrowing Culture and Debt Relief: Evidence from a Policy Experiment
Borrowing Culture and Debt Relief: Evidence from a Policy Experiment Sankar De (Shiv Nadar University, India) Prasanna Tantri (Centre for Analytical Finance, Indian School of Business) IGIDR Emerging Market
More informationCBA Model Question Paper C04
CBA Model Question Paper C04 Question 1 The recession phase of the trade cycle A is often caused by excessive consumer expenditure. B is normally characterised by accelerating inflation. C is most prolonged
More informationSaving, Investment, and the Financial System
Saving, Investment, and the Financial System The Financial System The financial system consists of institutions that help to match one person s saving with another person s investment. It moves the economy
More informationChapter 3: Diverse Paths to Growth
Chapter 3: Diverse Paths to Growth Is wealthier healthier? Determinants of growth in health and education Inequality and HDI Market, State, and Institutions Microfinance Economic Growth and Changes in
More informationEntrepreneurship 2013 Chapter 9: Business Funding
Tools: Printer 8.5 x 11 paper Scissors Directions: 1. Print 2. Fold paper in half vertically 3. Cut along dashed lines Copyright Goodheart-Willcox Co., Inc. All rights reserved. accounts payable Money
More informationMICROFINANCE IN LATIN AMERICA AND THE CARIBBEAN: PAST, PRESENT AND FUTURE
MICROFINANCE IN LATIN AMERICA AND THE CARIBBEAN: PAST, PRESENT AND FUTURE Nancy Lee General Manager MULTILATERAL INVESTMENT FUND Multilateral Investment Fund Member of the IDB Group Microfinance Trends
More informationThe Framework to Monitor and Assess the Systemic Risk China s Practice
The Framework to Monitor and Assess the Systemic Risk China s Practice LIAO Min Director-General CBRC Shanghai Office Monetary Policy Workshop on Strengthening Macroprudential Framework, Tokyo May 23,
More information2013 China Development Forum survey report. Choosing China: Insights from multinationals on the investment environment
2013 China Development Forum survey report Choosing China: Insights from multinationals on the investment environment Target growth markets Which three of these key markets would you invest in? Source:
More informationEVALUATIONS OF MICROFINANCE PROGRAMS
REPUBLIC OF SOUTH AFRICA GOVERNMENT-WIDE MONITORING & IMPACT EVALUATION SEMINAR EVALUATIONS OF MICROFINANCE PROGRAMS SHAHID KHANDKER World Bank June 2006 ORGANIZED BY THE WORLD BANK AFRICA IMPACT EVALUATION
More informationInterest Rates Caps AN INTERNATIONAL PERSPECTIVE
Interest Rates Caps AN INTERNATIONAL PERSPECTIVE Crispen Mawadza May 18, 2018 If this is such a bad idea, then why is it so common? 76 Interest rate ceilings have had a polarizing effect with lenders and
More informationReforming the Transmission Mechanism of Monetary Policy in China
Reforming the Transmission Mechanism of Monetary Policy in China By Wang Yu*, Ma Ming* China's reform on the transmission mechanism of monetary policy has advanced dramatically, especially since 1998,
More informationBANKING ON THE POOR. Unleashing the Benefits of Microfinance INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE
INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE sustainable options for ending hunger and poverty BANKING ON THE POOR Unleashing the Benefits of Microfinance Until the 1980s only a handful of institutions
More informationFinancial Investment
Financial Investment Dagmar Linnertová Dagmar.linnertova@mail.muni.cz Seminars Excercises in a seminars evaluated by lecturer Questions as a preparation for final test (2, 1 or 0 points) maximum points
More informationMis-Allocation in Industry
Mis-Allocation in Industry Dilip Mookherjee Boston University Ec 721 Lecture 7 DM (BU) 2018 1 / 19 Introduction Meaning of Misallocation (Restuccia-Rogerson (JEP 2017)) Misallocation refers to deviations
More informationInternational Finance
International Finance FINA 5331 Lecture 2: U.S. Financial System William J. Crowder Ph.D. Financial Markets Financial markets are markets in which funds are transferred from people and Firms who have an
More informationEmerging Markets: Broader opportunities and declining systematic risk
June 2013 Emerging Markets: Broader opportunities and declining systematic risk Favorable outlook for emerging markets equity and debt Alexander Muromcew, Portfolio Manager, Emerging Markets Equity Strategy
More informationInvestment and Financing Policies of Nepalese Enterprises
Investment and Financing Policies of Nepalese Enterprises Kapil Deb Subedi 1 Abstract Firm financing and investment policies are central to the study of corporate finance. In imperfect capital market,
More informationCredit Allocation under Economic Stimulus: Evidence from China. Discussion
Credit Allocation under Economic Stimulus: Evidence from China Discussion Simon Gilchrist New York University and NBER MFM January 25th, 2018 Broad Facts for China (Pre 2008) Aggregate investment rate
More informationThe Swedish Model for Managing Contingent Liabilities
The Swedish Model for Managing Contingent Liabilities Presentation by the Swedish National Debt Office February 24, 2016 Agenda o The Swedish model for government guarantees and loans Background Institutional
More informationCollier and Gunning: Explaining African Economic Performance
Collier and Gunning: Explaining African Economic Performance Africa: The worst performing continent Per capita GDP falls Per capita food production falls Why? Historical factors, colonialism Natural factors
More informationCredit Lecture 23. November 20, 2012
Credit Lecture 23 November 20, 2012 Operation of the Credit Market Credit may not function smoothly 1. Costly/impossible to monitor exactly what s done with loan. Consumption? Production? Risky investment?
More informationMoney and Banking. Lecture XII: Financial Risks in the Chinese Economy. Guoxiong ZHANG, Ph.D. December 5th, Shanghai Jiao Tong University, Antai
Money and Banking Lecture XII: Financial Risks in the Chinese Economy Guoxiong ZHANG, Ph.D. Shanghai Jiao Tong University, Antai December 5th, 2017 Source: http://editorialcartoonists.com Road Map Foundations
More informationChapter 1. Investments: Background and Issues. Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 1 Investments: Background and Issues McGraw-Hill/Irwin Copyright 2010 by The McGraw-Hill Companies, Inc. All rights reserved. 1.1 Real Versus Financial Assets 1-2 Real Versus Financial Assets Essential
More informationOverview. Financial Systems approach to microfinance Basic roles and functions of government and donors at various points within the financial sector
Overview Financial Systems approach to microfinance Basic roles and functions of government and donors at various points within the financial sector The Borders of Microfinance are Blurring Khan bank serving
More informationThe Treatment of Risk and Liquidity Transformation in the Measurement of FISIM
MEETING OF THE TASK FORCE ON FINANCIAL INTERMEDIATION SERVICES INDIRECTLY MEASURED (FISIM) Hosted by the IMF March 3 & 4, 2011 IMF Headquarters 1 (HQ1) Room 2-530, 700 19 th Street N.W., Washington D.C.
More informationMIDTERM EXAMINATION FALL
MIDTERM EXAMINATION FALL 2010 MGT411-Money & Banking By VIRTUALIANS.PK SOLVED MCQ s FILE:- Question # 1 Wider the range of outcome wider will be the. Risk Profit Probability Lose Question # 2 Prepared
More informationSECTOR ASSESSMENT (SUMMARY): FINANCE 1
Country Partnership Strategy: Pakistan, 2015 2019 SECTOR ASSESSMENT (SUMMARY): FINANCE 1 1. Sector Performance, Issues and Opportunities 1. Financial sector participants. Pakistan s financial sector is
More informationThe Role of Interbank Markets in Monetary Policy: A Model with Rationing
The Role of Interbank Markets in Monetary Policy: A Model with Rationing Xavier Freixas Universitat Pompeu Fabra and CEPR José Jorge CEMPRE, Faculdade Economia, Universidade Porto Motivation Starting point:
More informationUnderutilized Capital David Dollar and Shang-Jin Wei
What's New Site Map Site Index Contact Us Glossary A quarterly magazine of the IMF June 2007, Volume 44, Number 2 Search Finance & Development Search Advanced Search About F&D Subscribe Back Issues Write
More information5 th ANNUAL SKBI CONFERENCE 2015ON "DIGITAL BANKING, FINANCIAL INCLUSION AND IMPACT INVESTING" P2P in China
5 th ANNUAL SKBI CONFERENCE 2015ON "DIGITAL BANKING, FINANCIAL INCLUSION AND IMPACT INVESTING" P2P in China Dr. Rui, Oliver Meng(CFA, FRM) Professor of Finance and Accounting Director Ph.D. Program Co-director
More informationCredit and Going into Debt A. What is credit?
Lesson 4 standards E.6.1 Explain the basic functions of money. E.6.2 Identify the composition of the money supply of the United States. E.6.3 Explain the roles of financial institutions. E.6.6 Explain
More informationPrepared by Iordanis Petsas To Accompany. by Paul R. Krugman and Maurice Obstfeld
Chapter 22 Developing Countries: Growth, Crisis, and Reform Prepared by Iordanis Petsas To Accompany International Economics: Theory and Policy, Sixth Edition by Paul R. Krugman and Maurice Obstfeld Chapter
More informationBankers lose interest!
1 Bankers lose interest! Bankers lose interest! How changing financial regulations affect all investors 1 Bankers lose interest! Contact: Doug Steevens Senior Portfolio Manager +44 (0)20 7086 9312 douglas.steevens@aonhewitt.com
More informationReview Exam 1. MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Review Exam 1 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Financial markets promote economic efficiency by A) reducing investment. B) channeling
More informationTransfer Pricing for Financial Services Sector
Transfer Pricing for Financial Services Sector 19 September 2008 1 The current TP landscape 2 The current TP landscape - FS perspective Until now, low level of tax audit activities - however significant
More information1. Primary markets are markets in which users of funds raise cash by selling securities to funds' suppliers.
Test Bank Financial Markets and Institutions 6th Edition Saunders Complete download Financial Markets and Institutions 6th Edition TEST BANK by Saunders, Cornett: https://testbankarea.com/download/financial-markets-institutions-6th-editiontest-bank-saunders-cornett/
More informationPART THREE FUNDAMENTALS OF FINANCIAL INSTITUTIONS. Copyright 2012 Pearson Prentice Hall. All rights reserved.
PART THREE FUNDAMENTALS OF FINANCIAL INSTITUTIONS Copyright 2012 Pearson Prentice Hall. All rights reserved. CHAPTER 7 Why Do Financial Institutions Exist? Copyright 2012 Pearson Prentice Hall. All rights
More informationThe Financial System. Sherif Khalifa. Sherif Khalifa () The Financial System 1 / 55
The Financial System Sherif Khalifa Sherif Khalifa () The Financial System 1 / 55 The financial system consists of those institutions in the economy that matches saving with investment. The financial system
More informationCredit Markets in Developing Countries: Introduction
Credit Markets in Developing Countries: Introduction 1. Introduction 1 Credit markets link savers to investors. What is so special about credit markets? Matches talents and skills with resources. Helps
More informationEC307 ECONOMIC POLICY IN THE UK MACROECONOMIC POLICY THE TRANSMISSION OF MONETARY POLICY
EC307 ECONOMIC POLICY IN THE UK MACROECONOMIC POLICY THE TRANSMISSION OF MONETARY POLICY Summary This lecture gets inside the black box, discussing the transmission mechanism of monetary policy, outlining
More informationUkraine's Fiscal Budget Situation
Jule 2003 In 1999, SigmaBleyzer initiated the International Private Capital Task Force (IPCTF) in Ukraine. Its objective was to benchmark transition economies to identify best practices in government policies
More informationSolutions to Midterm Exam #2 Economics 252 Financial Markets Prof. Robert Shiller April 1, PART I: 6 points each
Solutions to Midterm Exam #2 Economics 252 Financial Markets Prof. Robert Shiller April 1, 2008 PART I: 6 points each 1. ACCORDING TO SHILLER ( IRRATIONAL EXUBERANCE, 2005), WHAT HAS BEEN THE LONG-TERM
More informationA Dynamic Analysis of President Obama s Tax Initiatives
FISCAL FACT Mar. 2015 No. 455 A Dynamic Analysis of President Obama s Tax Initiatives By Stephen J. Entin Senior Fellow Executive Summary President Obama proposed a long list of changes to the tax system
More informationFinancing conditions for bankable projects
Financing conditions for bankable projects Within a project finance framework, debt and equity providers will have a number of requirements to make a project bankable. Equity investors will choose how
More informationEdexcel Economics AS-level
Edexcel Economics AS-level Unit 2: Macroeconomic Performance and Policy Topic 7: Macroeconomic Objectives and Policies 7.3 Macroeconomic policy instruments Notes Demand-side policies Demand-side policies
More informationInformal Sector and Taxation in Kenya: Issues and Policy Options
Informal Sector and Taxation in Kenya: Issues and Policy Options Presentation during a Public Forum Held at Nairobi Sarova Hotel - Nairobi 3 rd May 2012 Martin M. Masinde 1 Presentation Outline 1.0 Introduction
More informationAQA Economics A-level
AQA Economics A-level Macroeconomics Topic 5: Fiscal and Supply Side Policies 5.1 Fiscal policy Notes Fiscal policy involves the manipulation of government spending, taxation and the budget balance. It
More informationThe Financial System. FINANCIAL INSTITUTIONS IN THE U.S. ECONOMY Financial Markets Stock Market Bond Market
Chapter 26. Saving, Investment, and the Financial System important financial institutions in the U.S. economy. how the financial system is related to key macroeconomic variables. the model of the supply
More informationENTREPRENEURSHIP KEY FINDINGS. POLICY LESSONS FROM THE iig PROGRAMME
POLICY LESSONS FROM THE iig PROGRAMME Does innovation and entrepreneurship play a role in growth? Is it possible to design policies that will successfully foster an entrepreneurial spirit? Is finance a
More informationChapter 11: Financial Markets Section 1
Chapter 11: Financial Markets Section 1 Objectives 1. Describe how investing contributes to the free enterprise system. 2. Explain how the financial system brings together savers and borrowers. 3. Explain
More informationFinancial Institutions
Financial Institutions 1 Learning Objectives The role of financial intermediaries. Commercial banks and the impact of reserve requirements. Federal Reserve regulation of financial institutions. The difference
More informationSaving, Investment, and the Financial System
7 Saving, Investment, and the Financial System The Financial System The financial system consists of the group of institutions in the economy that help to match one person s saving with another person
More informationEconomic Survey of India to
Economic Survey of India 1947-48 to 2008-09 Contents Author's Note on the Book vii-xvi 1. Indian Economy Since Independence: An Overview 1-24 1.1 Economic Scene on the Eye of Independence 1.2 From Regulations
More informationDeveloping Countries Chapter 22
Developing Countries Chapter 22 1. Growth 2. Borrowing and Debt 3. Money-financed deficits and crises 4. Other crises 5. Currency board 6. International financial architecture for the future 1 Growth 1.1
More informationPublic Debt Classification of Public Debt (a) Internal and External: (b) Productive and Unproductive: (c) Short-term and Long-term:
Public Debt Public debt refers to borrowing by a government from within the country or from abroad, from private individuals or association of individuals or from banking and NBFIs. Classification of Public
More informationEconomics of Money, Banking, and Financial Markets, 11e (Mishkin) Chapter 2 An Overview of the Financial System. 2.1 Function of Financial Markets
Economics of Money, Banking, and Financial Markets, 11e (Mishkin) Chapter 2 An Overview of the Financial System 2.1 Function of Financial Markets 1) Every financial market has the following characteristic.
More informationTHE IMPACT OF FINANCIAL INTERMEDIARIES ON RESOURCE ALLOCATION AND ECONOMIC GROWTH. Philip Lowe. Research Discussion Paper 9213.
THE IMPACT OF FINANCIAL INTERMEDIARIES ON RESOURCE ALLOCATION AND ECONOMIC GROWTH Philip Lowe Research Discussion Paper 9213 December 1992 Economic Research Department Reserve Bank of Australia This paper
More informationSmall Enterprise Responses to Liberalization in Five African Countries
Small Enterprise Responses to Liberalization in Five African Countries Page 1 of 5 THEWORLDBANKGROUP ~~~~~~~~~~~~- - -----------, Findings reports on ongoing operational, economic and sector work carried
More informationDELINQUENCY MITIGATING RISK FACING SACCOS IN COURSE OF OPERATIONS AFRICA SACCO LEADERS FORUM 2015 HARARE ZIMBABWE
DELINQUENCY MITIGATING RISK FACING SACCOS IN COURSE OF OPERATIONS AFRICA SACCO LEADERS FORUM 2015 HARARE ZIMBABWE OUTLINE Defining delinquency Causes of delinquency Results and Costs of Loan delinquency
More informationAbstract on first page.
Ahrendsen, Bruce L. "Slovak Farm Financial Problems: Profitability, Debt, Late Payment, and Lack of Credit." Invited technical assistance report to the Ministry of Agriculture, Slovak Republic, May 15-23,
More informationThe Development of the Mortgage Market and Prudential Supervision in Russia
The Development of the Mortgage Market and Prudential Supervision in Russia Mark Boleat June 2003 Contents Foreword iii Executive summary 1 Chapter 1 The importance of mortgage finance in emerging markets
More informationE2E Presentation What do Banks Look For?
What is Lee Bank? Been in business here in Berkshire County since 1852. What does a bank like Lee Bank do? How does it help individuals and businesses? Bank s are businesses. How does a bank make a profit?
More informationCorporate Finance 2 - Lesson 4 CHAPTER 17 THRIFT INSTITUTIONS AND MORTGAGE BANKS
CHAPTER 17 THRIFT INSTITUTIONS AND MORTGAGE BANKS 2 Topics Covered in Chapter Thrift Institutions Savings Associations Savings Banks Credit Unions Finance Companies 3 Historical Development of Thrift Institutions
More informationChapter 1 Introduction to Economics 1.0 CONTENTS. Introduction to the Series
CONTENTS Introduction to the Series iv 1 Introduction to Economics 5 2 GDP and its Determinants 17 3 Aggregate Demand and Aggregate Supply 28 4 The Macroeconomic Objectives 47 5 Fiscal Policy 73 6 Monetary
More informationII. Comparing Levels Of Development
II. Comparing Levels Of Development Countries are unequally endowed with natural resources. For example, some countries benefit from fertile agricultural soils, while others have to put a lot of effort
More informationBBM2153 Financial Markets and Institutions Prepared by Dr Khairul Anuar
BBM2153 Financial Markets and Institutions Prepared by Dr Khairul Anuar L3: Why Do Financial Institutions Exist? www. notes638.wordpress.com Copyright 2015 Pearson Education, Ltd. All rights reserved.
More informationFinancial Markets in China
Financial Markets in China Hao Wang Tsinghua University September 16, 2015 Hao Wang (Tsinghua University) Financial Markets in China September 16, 2015 1 / 70 The purposes 1 Gain insights into the Chinese
More informationTAX REFORM TO IMPROVE TAX COMPLIANCE
TAX REFORM TO IMPROVE TAX COMPLIANCE Juan Toro IMF s Fiscal Affairs Department -- Assistant Director 7th IMF-Japan High-Level Tax Conference For Asian Countries Tokyo, April 5-7, 2016 Outline Challenges
More informationDiscussion of The Varying Shadow of China s Banking System by Xiaodong Zhu
Discussion of The Varying Shadow of China s Banking System by Xiaodong Zhu Discussant: Hanming Fang University of Pennsylvania 2017 Asia Economic Policy Conference November 17, 2017 1 / 13 Xiaodong s Paper...
More informationRecent Developments In Microfinance. Robert Lensink
Recent Developments In Microfinance Robert Lensink Myth 1: MF is about providing loans. Most attention to credit. Credit: Addresses credit constraints However, microfinance is the provision of diverse
More informationWhat is Wrong with Market-Oriented Policies?
June 2003 In 1999, SigmaBleyzer initiated the International Private Capital Task Force (IPCTF) in Ukraine. Its objective was to benchmark transition economies to identify best practices in government policies
More informationReform of State-Owned Enterprises
Reform of State-Owned Enterprises Thornton Matheson Vietnam: Retaining Stability, Regaining Competitive Edge, Reaping Growth Potential Hanoi, April 18, 2013 1 Vietnam should resume the path to becoming
More informationRich and Poor. Indicators of Economic Welfare for 4 groups of countries, 2003 GNP per capita (1995 US$)
Rich and Poor Indicators of Economic Welfare for 4 groups of countries, 2003 GNP per capita (1995 US$) Life expectancy Low income 450 58 Lower-middle income 1480 69 Upper-middle income 5340 73 High income
More informationAnti-Poverty in China: Minimum Livelihood Guarantee Scheme
National University of Singapore From the SelectedWorks of Jiwei QIAN Winter December 2, 2013 Anti-Poverty in China: Minimum Livelihood Guarantee Scheme Jiwei QIAN Available at: https://works.bepress.com/jiwei-qian/20/
More informationChina s macroeconomic imbalances: causes and consequences. John Knight and Wang Wei
China s macroeconomic imbalances: causes and consequences John Knight and Wang Wei 1. Introduction This paper is different from the specialist papers at this conference It is more general, and is more
More informationENTERPRISE SURVEYS WHAT BUSINESSES EXPERIENCE. Benin 2016 Country Profile ENTERPRISE SURVEYS
ENTERPRISE SURVEYS ENTERPRISE SURVEYS WHAT BUSINESSES EXPERIENCE Benin 216 Country Profile 1 Contents Introduction... 3 Firms Characteristics... 4 Workforce... Firm performance... Physical Infrastructure...
More informationCHAPTER 8 FISCAL POLICY: COPING WITH INFLATION AND UNEMPLOYMENT
CHAPTER 8 FISCAL POLICY: COPING WITH INFLATION AND UNEMPLOYMENT Chapter in a Nutshell To say that an economy is in equilibrium tells us very little about the general state of the economy. The model showing
More informationEconomic Reform without Losers: Twenty Years of Chinese Experience ( )
Economic Reform without Losers: Twenty Years of Chinese Experience (1979-1999) Lawrence J. Lau, Yingyi Qian and Gérard Roland Department of Economics Stanford University Stanford, CA 94305-6072, U.S.A.
More informationResponsible Consumer Lending
Responsible Consumer Lending Daniel Rozas Briefing Note 08/2013 Responsible Consumer Lending Daniel Rozas Early pioneers of the microfinance movement touted it as a vehicle to promote entrepreneurship
More informationINDEPENDENT EVALUATION GROUP UKRAINE COUNTRY ASSISTANCE EVALUATION (CAE) APPROACH PAPER
Country Background INDEPENDENT EVALUATION GROUP UKRAINE COUNTRY ASSISTANCE EVALUATION (CAE) APPROACH PAPER April 26, 2006 1. Ukraine re-established its independence in 1991, after more than 70 years of
More informationFinancial Inclusion Glossary
Financial Inclusion Glossary In order to achieve full financial inclusion we must agree on what it means. Defining financial inclusion requires building out a shared language and describing how various
More informationAarhat Multidisciplinary International Education Research Journal (AMIERJ) ISSN
Page18 MICRO-FINANCE IN INDIA PROGRESS OF SHG-BANK LINKAGE PROGRAMME RAVINDER KUMAR Deptt. Of Commerce Kurukshetra University Kurukshetra RITIKA Deptt. Of Commerce Kurukshetra University Kurukshetra Abstract
More informationPreview PP542. International Capital Markets. Gains from Trade. International Capital Markets. The Three Types of International Transaction Trade
Preview PP542 International Capital Markets Gains from trade Portfolio diversification Players in the international capital markets Attainable policies with international capital markets Offshore banking
More information