Browsing Department of Economics by Author "Adelman, I."
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Item Open AccessIs this the end of economic development?(Elsevier BV, 2000) Adelman, I.; Yeldan, E.The paper reviews the policies and institutions used by governments that have successfully promoted economic development. It examines which policy instruments countries can still wield in the current global trading and financial regimes. It concludes that the openness and nature of short-term financial markets eliminate state use of interest and exchange rate policies while GATT/WHO eliminate trade and commercial policy. As a result, developing countries are severely limited in the means they can employ to promote development. We conclude by suggesting four reforms to increase state autonomy and lessen the frequency and severity of financial crises. (C) 2000 Elsevier Science B.V. All rights reserved. Item Open AccessThe minimal conditions for a financial crisis: a multiregional intertemporal CGE model of the Asian crisis(Pergamon Press, 2000) Adelman, I.; Yeldan, E.The globalization of world capitalism constrains the ability of the developmental state to pursue an independent industrialization and foreign trade strategy. We use an intertemporal, multiregion CGE model, to study the fundamental reasons for a financial crisis. We find that we can create a realistic crisis in the Asia region when capital markets are open and there is an unexpected rise in the risk premium of the Asia region. When capital markets are closed and the state retains all its policy instruments, the Asia region not only avoids a crisis but increases its rate of growth. (C) 2000 Published by Elsevier Science Ltd. All rights reserved.