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Gap Disequilibria: Inflation, Investment, Saving and Foreign Exchange

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  • Lance Taylor

Abstract

Four "gaps" or restrictions on capacity growth -- from available saving and foreign exchange, investment demand (with crowding-in of private by public capital formation), and ex ante discrepancies between inflation rates needed on the one hand to achieve macroeconomic balance via the inflation tax and forced saving and on the other hand to meet increases in costs -- are analyzed in a simple, unified framework.

Suggested Citation

  • Lance Taylor, 1989. "Gap Disequilibria: Inflation, Investment, Saving and Foreign Exchange," WIDER Working Paper Series wp-1989-076, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-1989-076
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    File URL: https://www.wider.unu.edu/sites/default/files/WP76.pdf
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    Cited by:

    1. de Souza, Joao Paulo A., 2014. "Growth Complementarity Between Agriculture and Industry: Evidence from a Panel of Developing Countries," UMASS Amherst Economics Working Papers 2014-11, University of Massachusetts Amherst, Department of Economics.

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