Institutional Affiliation: International Monetary Fund
|The Government Budget and the Economic Transformation of Poland |
in The Transition in Eastern Europe, Volume 2, Restructuring, Olivier Blanchard, Kenneth Froot, Jeffrey Sachs, editors
|Accumulation and Growth in a Two-Country Model: A Simulation Approach|
with : w0572
This paper analyzes saving and capital accumulation in a two-good growth model of two market economies in which economic agents optimize with perfect foresight. The goal is to present a model in which short-run dynamics and the steady-state are soundly integrated. We stress the importance of asset markets as the linkage that transmits disturbances both internationally and intertemporally. While many components of the model described below can be found in the literature on optimal consumption, investment and international growth models, we provide a consistent synthesis. Our framework permits the analysis of structural adjustment in the global economy, and the dynamic effects of a wide range of public policies.