This was the title of Nobel Prize winner Edward Prescott’s keynote address today at the World Bank, at the opening of the PREM (Poverty Reduction and Economic Management) Conference 2006.
From his presentation, economic integration would be the main driver for growth and development.
As every Friday, we are posting a teaching note prepared by Raj Nallari and Breda Griffith.
This week we continue looking at National Income Accounts. The note explains three different approaches for determining the GDP:
The Production Approach to Measuring GDP
- The Expenditure Approach to Measuring GDP
- The Income Approach to Measuring GDP
The note also explains the difference between Nominal and Real GDP.
- Fridays Academy
Lawrence Summers, president of Harvard University, delivered a few weeks ago a speech on Global Account Imbalances and Emerging Markets Reserve Accumulation, at the Reserve Bank of India.
Like every Friday, we are posting one of Raj Nallari’s teaching notes.
Before we examine how economic growth is measured (through the concept of GDP), we have a look at some basic macroeconomic concepts.
Arising from the interaction and behavior of the economic sectors we studied last Friday, there are certain key macroeconomic concepts that play a central role in macroeconomic analysis. These are defined in the framework of the System of National Accounts (SNA).
In their paper "Foreign Bank Entry, Performance of Domestic Banks and the Sequence of Financial Liberalization", PGP's Nihal Bayraktar and Yan Wang investigate the effects of banking sector openness and the sequence of financial liberalization on the efficiency and competitiveness of domestic