05213oam 22013214 450 991081075060332120200520144314.01-4623-9822-71-4527-2793-71-283-51535-01-4519-0976-49786613827807(CKB)3360000000443708(EBL)3014360(SSID)ssj0000940077(PQKBManifestationID)11518981(PQKBTitleCode)TC0000940077(PQKBWorkID)10948363(PQKB)11027616(OCoLC)698585578(IMF)WPIEE2006263(MiAaPQ)EBC3014360(IMF)WPIEA2006263(EXLCZ)99336000000044370820020129d2006 uf 0engur|n|---|||||txtccrCan Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses /Celine Rochon, Andrew Feltenstein1st ed.Washington, D.C. :International Monetary Fund,2006.1 online resource (27 p.)IMF Working Papers"November 2006".1-4518-6523-6 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. CALIBRATION AND SIMULATIONS""; ""IV. POLICY""; ""V. CONCLUSION""; ""REFERENCES""In this paper, we study the impact of labor market restructuring and foreign direct investment on the banking sector, using a dynamic general equilibrium model with a financial sector. Numerical simulations are performed using stylized Chinese data, and banks failures are generated through increases in the growth rate of the labor force, a revaluation of the exchange rate or an increase in debt issue to finance the government deficit, as compared to a benchmark scenario in which banks remain solvent. Thus bank failures can result from what might seem to be either beneficial economic trends, or correct monetary and fiscal policies. We introduce fiscal policies that modify relative factor prices by lowering the capital tax rate and increasing the tax rate on labor. Such policies can prevent banking failures by raising the return to capital. It is shown that such fiscal policies are, in the short run, welfare reducing.IMF Working Papers; Working Paper ;No. 2006/263Bank failuresFiscal policyBankingimfBanks and BankingimfBanks and bankingimfBanksimfBudget planning and preparationimfBudget SystemsimfBudgetimfBudgeting & financial managementimfBudgetingimfDebt ManagementimfDebtimfDebts, PublicimfDepository InstitutionsimfDistressed institutionsimfExports and ImportsimfFinanceimfFinancial Institutions and Services: GeneralimfFinancial services industryimfForeign direct investmentimfGovernment debt managementimfIndustries: Financial ServicesimfInternational InvestmentimfInvestments, ForeignimfLong-term Capital MovementsimfMicro Finance InstitutionsimfMortgagesimfNational BudgetimfPublic finance & taxationimfPublic FinanceimfSovereign DebtimfChina, People's Republic ofimfBank failures.Fiscal policy.BankingBanks and BankingBanks and bankingBanksBudget planning and preparationBudget SystemsBudgetBudgeting & financial managementBudgetingDebt ManagementDebtDebts, PublicDepository InstitutionsDistressed institutionsExports and ImportsFinanceFinancial Institutions and Services: GeneralFinancial services industryForeign direct investmentGovernment debt managementIndustries: Financial ServicesInternational InvestmentInvestments, ForeignLong-term Capital MovementsMicro Finance InstitutionsMortgagesNational BudgetPublic finance & taxationPublic FinanceSovereign DebtRochon Celine1771054Feltenstein Andrew897110DcWaIMFBOOK9910810750603321Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses4260183UNINA