econ32929 Word Scramble
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| Question | Answer |
| . Commercial banks, financial intermediation | The more financial dev. occurs, the more the ability of the financial system to perform its second major function can happen. It involves gathering savings and channeling it into a sml amount of investors. In early stages, these go to commerical banks. |
| Hyperinflation, government budget deficit | Hyperinflation created by the excess of the creation of money, have a strong correlation to GBD |
| Inflation tax, forced savings | |
| Pegged exchange rate, floating exchange rate | |
| Foreign aid, nonconcessional assistance | |
| Commitment to development index, foreign aid | |
| Aid dependency, aid agencies | |
| External transfer problem, internal transfer problem | |
| Insolvent borrower, illiquid borrower | |
| Fixed exchange rates, capital mobility | |
| . Liquidity, solvency | |
| . Stabilization, structural adjustment | |
| Debt overhang, HIPC | |
| Debt service ratio, sovereign debt | |
| Permanent-income hypothesis, signalling effect | |
| Net barter terms of trade, income terms of trade ( | |
| Tradable goods, primary exports | |
| Dutch disease, real exchange rate |
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