Search results
Results from the WOW.Com Content Network
Thus, financial repression is most successful in liquidating debts when accompanied by inflation and can be considered a form of taxation, [6] or alternatively a form of debasement. [7] The size of the financial repression tax was computed for 24 emerging markets from 1974 to 1987. The results showed that financial repression exceeded 2% of GDP ...
Economic repression comprises various actions to restrain certain economical activities or social groups involved in economic activities. It contrasts with economic liberalization . Economists note widespread economic repression in developing countries .
[10] [5] [2] Through the lens of Keynes's General Theory, Krugman analyses the economic crisis of Asia and Latin America, incorporating the usual Keynesian elements: a liquidity trap, rejection of orthodox economics, chronically volatile financial markets and mistreatment of aggregate demand/supply.
Investors Worried about Financial Repression as Policy Decisions Drive Global Markets Survey results show more than 66% of investors want asset managers to prioritize a deeper understanding of the ...
Debt deflation is a theory that recessions and depressions are due to the overall level of debt rising in real value because of deflation, causing people to default on their consumer loans and mortgages. Bank assets fall because of the defaults and because the value of their collateral falls, leading to a surge in bank insolvencies, a reduction ...
Third, financial transactions conducted by the kleptocrat in a Western country complete the integration of the funds. Once a kleptocrat has purchased an asset this can then be resold, providing a defensible albeit illegal origin of the funds.
This period also saw financial repression—low nominal interest rates and low or negative real interest rates (nominal rates lower than inflation plus taxation), via government policy—resulting respectively in debt servicing costs being low (low nominal rates) and in liquidation of existing debt (via inflation and taxation). [12]
The financial crisis and the recession have been described as a symptom of another, deeper crisis by a number of economists. For example, Ravi Batra argues that growing inequality of financial capitalism produces speculative bubbles that burst and result in depression and major political changes.