Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses / / Celine Rochon, Andrew Feltenstein

• Autore: Rochon Celine
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2006
• Descrizione fisica: 1 online resource (27 p.)
• Soggetto topico: Bank failures; Fiscal policy; Banks and Banking; Budgeting; Exports and Imports; Public Finance; Industries: Financial Services; International Investment; Long-term Capital Movements; Banks; Depository Institutions; Micro Finance Institutions; Mortgages; National Budget; Budget Systems; Debt; Debt Management; Sovereign Debt; Financial Institutions and Services: General; Finance; Banking; Budgeting & financial management; Public finance & taxation; Foreign direct investment; Budget planning and preparation; Government debt management; Distressed institutions; Investments, Foreign; Banks and banking; Budget; Debts, Public; Financial services industry
• Soggetto geografico: China, People's Republic of
• Altri autori: FeltensteinAndrew
• Note generali: "November 2006".
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: ""Contents""; ""I. INTRODUCTION""; ""II. THE MODEL""; ""III. CALIBRATION AND SIMULATIONS""; ""IV. POLICY""; ""V. CONCLUSION""; ""REFERENCES""
• Sommario/riassunto: 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.
• Titolo autorizzato: Can Good Events Lead to Bad Outcomes? Endogenous Banking Crises and Fiscal Policy Responses
• ISBN: 1-4623-9822-7; 1-4527-2793-7; 1-283-51535-0; 1-4519-0976-4; 9786613827807
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910788405303321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2006/263