The effects of foreign borrowing policies on economic growth: success or failure?

Foreign savings closely interact with economic performance. External loans are partly influenced by the government's attempt to balance its budget. This study investigates the relationship between public sector foreign borrowing and economic growth. Results indicate that only under circumstances of (1) moderate income tax rates to guarantee the solvency of external loans and (2) households having the patience to substitute consumption between different periods can domestic government finance fiscal deficits by borrowing abroad, and thereby enhance investment and economic growth. Otherwise, additional foreign borrowing is associated with higher indebtedness and slower economic growth.impatience, foreign borrowing, economic growth,

Curva de Phillips e macrodinâmica do capital ótimo Phillips curve and the macrodynamics of optimal capital

Este artigo apresenta novos argumentos para alguns dos fatos estilizados, recentemente, sobre a dinâmica da inflação, apontados por Mishkin (2007), quais sejam: a) a persistência dos choques de inflação estão declinando; b) a curva de Phillips esta se tornando mais horizontal e; c) a inflação tem se mostrado menos reativa à choques nos preços. É abordado o problema da determinação da oferta agregada em que alegamos que a versão novokeynesiana da curva de Phillips, apesar dos avanços, ainda não incorpora os determinantes da ampliação do produto potencial e, que esta inclusão é uma das explicações para os fatos estilizados (fato b), revelados recentemente por Mishkin.<br>This paper presents new arguments for some recent stylized facts about the dynamics of inflation shown by Mishkin (2007), which are: a) the persistence of inflation shocks are declining; b) the Phillips' curve of this becoming more horizontal and; c) inflation has been less reactive to shocks on prices. It addressed the problem of determining the aggregate supply where the new version of the Keynesian Phillips' curve, that despite progress, not yet incorporating the determinants of the expansion potential of the product and that this inclusion is one of the explanations for stylized facts (fact b ) revealed recently by Mishkin