haku: @indexterm open economy / yhteensä: 204
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| Tekijä: | Palokangas, T. |
| Otsikko: | Inflation and growth in an open economy |
| Lehti: | Economica
1997 : AUG, VOL. 64:255, p. 509-518 |
| Asiasana: | INFLATION GROWTH OPEN ECONOMY |
| Kieli: | eng |
| Tiivistelmä: | Where a private agent or a government obtains any amount of debt from abroad for a given interest rate,the rate of return paid to domestic wealth is fixed by this interest rate and there is no link between growth and inflation rates. To end up with the endogenous growth, it is assumed that the international credit market id imperfect, so that private agents can borrow only with a collateral and governments face increasing marginal costs for their debts. Given such a market, the behavior of the private sector is simplified by the folloving property: when the credit constraint for private agents is binding , national wealth is equal to the part of domestic capital that can not be used as collateral. |
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