Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Macroeconomic Disorder By Andrei Belousov and Lance Taylor with Elena Abramova, Dongyi Liu, Alexander Vorobyov, and Stanislav Zhukov Matthew David Hauer Yia Yang China High level of transfers between firms and government (31% to gov., 24% to firms) (All numbers expressed in percentages of GDP) High level of trade (16.8%) High savings from firms and households (37.5% and 10.4%) High investment and capital accumulation With large deposits by firms and households hyperinflation seemed imminent Curbed by increase in output and monetization of rural economic activity Russia in 1989 More closed than China (8.7%) in foreign trade Slightly lower savings rates (7.6% for households and 26.8% for firms) Still run by command economy Russia in Early Transition 1992-1993 Large increase in foreign trade (50.4% in 1992) Huge price jumps with removal of controls (3.5 to 7.7 times) Drop in household income (60.8% in 1989 to 46.7% in 1992) Firms savings spike in 1992 (74.5%) Firms couldn’t pay high prices for intermediate goods, ran mutual arrears, 39 billion Rubles in Jan. 1992, 3,900 billion Rubles in July 1992 Russia in 1993 to 1995 Household income and firm income had moderate recovery (54.4% for households and 54.8% for firms in 1995) Larger shares of household income for social payments and distributed profits Savings peak in 1994 but drop in 1995 because of investment scams Falling inflation Declining tax shares (40.2% in 1990 to 25.5% in 1995) Ruble appreciated leading to increase in foreign assets held by Russians and a drop in manufacturing exports Differences between Russia and China China’s high savings absorbed by domestic investment, in Russian savings went to foreign assets Russia’s financial system incapable of promoting domestic investment China’s growth fueled by exports Russia’s export are mostly raw materials, low domestic demand, due to low consumptions and investment, cannot fuel growth either “The development and Sustainability of the Russina GDP” by Simo Leppänen Depreciation of Ruble in late 1990’s fueled industrial output Russia is highly vulnerable to changes in energy prices and real exchange rates Financial system still struggling to close gap between saving and investment Services increasing in GDP share McKinnon, Ronald I, Aslund, Anders, & Rostowski, Jacek. (1993). Gradual versus rapid liberalization in socialist economies: The problem of macroeconomic control. The World Bank Research Observer: Annual Conference on Development Economics,63. Retrieved November 29, 2009, from ABI/INFORM Global. China took the gradualist approach Russia took the rapid liberalization approach Wanting an unrestricted foreign trade with other industrialized countries Sharp decrease of output A weak communist party Collapse of Council for Mutual Economic Assistance (CMEA)