武汉大学金融系各科课件初级宏观THE CHALLENGE OF ECONOMIC DEVELOPMENT.pptVIP

1. Aspects of A Developing Country(591-593L) 2. Sources of Development (593R-598L) Human Resources Natural Resources Capital Formation Technological Change and Innovation 3. Strategies for Economic Development(598L-601L) 3.1 Backwardness Hypothesis 3.2 Industrialization vs. Agriculture 3.3 State vs. Market Elements of a market-oriented policy ----- Predominance of private property ownership ------Outward orientation in trade policy, esp. low tariffs few quantitative trade restrictions ------Promotion of small business ------Fostering of competition ------Stable macroeconomic environment, esp. predictable taxes low inflation 3.4 Growth and Openness 4. Different Systems for Development (28B:601L-) (Alternative Models for Development) Free-market Absolutism Mixed Capitalism---- the U.S. Managed Market/Capitalism----South Korea, Singapore, etc. Socialism: Former Europe Soviet Communism (Command Economy) Invisible Hand Every individual …neither intends to promote the public interest, nor knows how much he is promoting it; He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. …By pursing his own interest, he frequently promotes that of the society more effectually than when he really intends to promote it. 4.1 The Asian Miracle Managed Market (or Managed Capitalism) Government Intervention with market based on private ownership. Success---- High saving rate and investment rate Investing in human capital and education Outward orientation Prudential Macroeconomic policy Lesson—Crony Capitalism 4.2 Socialism Government ownership Planning Redistribution of income and welfare state Peaceful and democratic evolution 4.3 Soviet Communism: omitted CHAPTER 29 EXCHANGE RATES AND THE INTERNATIONAL FINANCIAL SYSTEM 1. Balance of International Payments(614- A