Financial Repression and Financial Liberalization in a Small Open Economy: A Cash-in-Advance Approach

• 발행기관: 서울대학교 경제연구소
• 저자명: Hong-Bum Kim Betty C. Daniel
• 간행물 정보: 『Seoul Journal of Economics』Seoul Journal of Economics Volume 13 No.4, 421~457쪽, 전체 36쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2000.12.31

영문 초록

It is widely believed that fragile domestic banks. together with their huge intermediation of foreign capital, contributed to outbreak and propagation of the 1997 Asian economic crisis. Notably, the crisis countries were those that had recently replaced their old regime of financial repression with a new regime of financial liberalization. This paper reexamines financial repression and liberalization using a cash-In-advance model, which explicitly considers capital accumulation in a small open economy. We derive and discuss the steady state in each regime. Further. we demonstrate that an economy is structurally more vulnerable to a negative real shock when it is financially liberalized than when repressed. Policy implication of this finding is also discussed.

목차

Abstract

Ⅰ. Introduction

Ⅱ. Financial Repression

Ⅲ. Financial Liberalization

Ⅳ. Is the Financially Liberalized Economy More Vulnerable to a Real Shock?

Ⅴ. Concluding Remarks

References

키워드

Financial repression Financial liberalization Cash-in-advance Small open economy