Savings rate and economic policy: notes on the possibilities of growth in an economy with restrictions

Fabio Giambiagi () and Edward J. Amadeo ()

Brazilian Journal of Political Economy, 1990, vol. 10, issue 1, 70-84

Abstract: The article discusses the relationship between savings and economic growth, tointegrate the main contributions of the models based on the hypothesis of full employmentand those which assume the existence of idle capacity. The text develops a hybrid model toshow that the effectiveness of the policies depends on the real situation of each economy.Thus, useful recommendations in a given context may be completely miscarrying in anotherone. Having this theoretical framework as guidelines, it is presented three paradigmaticcases and analysed the effects over investment expected in each different situation, as resultof official policies. JEL Classification: O41; E21.

Keywords: Savings; models of economic growth (search for similar items in EconPapers)
Date: 1990
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