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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
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.
- Spring '08