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It has been argued that higher levels of inflation lead to greater uncertainty about future inflation and to greater dispersion of relative prices. In either case, inflation could reduce the efficiency of market prices in coordinating economic activities. This paper shows that the rise of inflation in Colombia, from low levels in the 1950s to average rates of 18–22 percent since the 1970s, has been accompanied by increased uncertainty and relative price dispersion; and that inflation has had a negative and persistent effect on real GDP growth.
Inflation --- Price Level --- Deflation --- Macroeconomics --- Prices --- Colombia
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Privatization promotes economic efficiency and growth, thereby reinforcing macroeconomic adjustment. In the short run, however, it can lead to job losses and wage cuts for workers and higher prices for consumers. This paper discusses these impacts and the fiscal implications of privatization. It then reviews various methods of privatization and finds that public sales and auctions can have more negative effects on workers but maximize the government’s revenue gains. Policymakers’ options for mitigating the social impact of privatization are surveyed, and experiences under adjustment programs reviewed.
Labor --- Macroeconomics --- Public Finance --- Welfare Economics: General --- Financing Policy --- Financial Risk and Risk Management --- Capital and Ownership Structure --- Value of Firms --- Goodwill --- Wage Level and Structure --- Wage Differentials --- Public Enterprises --- Public-Private Enterprises --- Comparison of Public and Private Enterprises and Nonprofit Institutions --- Privatization --- Contracting Out --- Employment --- Unemployment --- Wages --- Intergenerational Income Distribution --- Aggregate Human Capital --- Aggregate Labor Productivity --- National Government Expenditures and Welfare Programs --- Labor Economics: General --- Unemployment: Models, Duration, Incidence, and Job Search --- Wages, Compensation, and Labor Costs: General --- Labour --- income economics --- Public finance & taxation --- Social assistance spending --- Economic sectors --- Expenditure --- Economic theory --- Expenditures, Public --- Labor economics --- Ghana --- Income economics
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This paper reviews and draws lessons from the stabilization and reform program that Korea implemented in response to the 1997-98 crisis. The economy recovered quickly from the deep recession in 1998 and its vulnerability to a balance of payments crisis has been reduced sharply. Significant progress has also been made in stabilizing the financial system and addressing corporate distress, and wide-ranging reforms have made Korea’s economy more open, competitive, and market driven. Notwithstanding these achievements, more needs to be done before the soundness of the corporate and financial sectors is firmly established.
Banks and Banking --- Corporate Finance --- Financial Risk Management --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Corporate Finance and Governance: General --- Financial Institutions and Services: General --- Financial Crises --- Banking --- Ownership & organization of enterprises --- Economic & financial crises & disasters --- Finance --- Corporate sector --- Financial sector --- Commercial banks --- Financial crises --- Economic sectors --- Financial institutions --- Loans --- Banks and banking --- Business enterprises --- Financial services industry --- Korea, Republic of
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