Liberalization Policies and Welfare in a Financially Repressed Economy

Juha Kähkönen
Additional contact information
Juha Kähkönen: International Monetary Fund

IMF Staff Papers, 1987, vol. 34, issue 3, 531-547

Abstract: The welfare effects of three types of liberalization policy--financial deregulation, relaxation of capital controls, and trade liberalization--are studied under the realistic assumption that in the short run all markets cannot be liberalized simultaneously. An intertemporal general equilibrium model with two traded goods is used to show that partial reforms, which in the long run are beneficial, may well cause welfare losses in the short run. Contrary to the standard view, raising the deposit rate may reduce welfare if tariffs are present, whereas tariffs can raise welfare when financial repression discourages saving.

Date: 1987
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.jstor.org/stable/3867095?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfstp:v:34:y:1987:i:3:p:531-547

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().