High price of oil saving rather than consuming out of

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Unformatted text preview: price of oil: Saving, rather than consuming, out of oil revenues by oil exporters (Example - Sovereign Wealth Funds). Dasgupta (UofT) Topic 4 26 / 33 Balance of Payments Global imbalance 2. Low domestic investment Poor financial intermediation: Heavily regulated finance industry; nationalized banks not interested in profit-maximization. High degree of risk: Absence of property rights, low levels of contract enforcement. Risk transformation is hard: Will require changing political institutions (Example - Asian financial crisis)...
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This note was uploaded on 04/07/2014 for the course ECO 365 taught by Professor Jordimondria during the Spring '08 term at University of Toronto- Toronto.

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