Like every Friday, from Raj Nallari and Breda Griffith's lecture notes.
Macroeconomic Fundamentals and Financial Development
From Raj Nallari and Breda Griffith's lecture notes.
A large body of both theoretical and empirical literature supports a positive causal link between a well-functioning financial system and economic growth. In particular, the economic growth studies of the last decade show that financial depth causes economic growth and that it is one of the few robust determinants of the subsequent growth path of countries.
The World Bank's South Asia Region has recently published a Development Policy Review on India.
From the report:
Flexible and Fixed Exchange Rates
Countries with flexible exchange rates allow their currency to increase or decrease in value against other currencies, depending on its demand and supply relative to the demand and supply of other foreign currencies.
From Raj Nallari and Breda Griffith's lecture notes
Inflation and Economic Growth
While inflationary policies can provide a short-run stimulus to economic growth, the economic literature suggests that, over the medium and long term high rates of inflation are bad for economic growth. Cross-country studies show that those countries with consistent positive growth records have on average much lower rates of inflation.
Submissions are accepted for the forthcoming Annual Awards and Medals Competition oganized by the Global Development Network (GDN), which carries prizes in cash and travel of over US $200,000. Submissions can be for a new research proposal or for a completed research paper. The last day for submissions is September 17, 2006 .