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econ32929

econ

QuestionAnswer
. 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
Created by: 576665119