'Big Bang' Versus Gradualism in Economic Reforms: An Intertemporal Analysis with an Application to China
Georgia State University - Department of Economics
Saleh M. Nsouli
International Monetary Fund (IMF)
IMF Staff Papers, Vol. 50, No. 3, pp. 458-480, 2003
This paper analyzes certain issues concerning the speed of adjustment and sequencing of reforms in a transition economy. It presents a dynamic general equilibrium model parameterized with Chinese data. The model is used to generate different policy simulations that highlight the importance of the policy instruments used during the transition period. The simulations consider privatization, tariff reform, and devaluation, as well as alternative speeds of introducing these policies. They show that different speeds of adjustment, as well as sequencing of reforms, will have very different implications for macro-economic aggregates.
Keywords: Transition, sequencing of reform
JEL Classification: D58, P21Accepted Paper Series
Date posted: April 22, 2005
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo8 in 0.313 seconds