A caricature (model) of the world economy
This paper provides an extremely stylized model of the workings of a global economy where one of its key driving factors is economic agents’ continuous struggle to find assets to park financial resources. This struggle naturally comes with euphoria and disappointments as many of the 'parking lo...
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| Autor principal: | |
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| Formato: | Artículo |
| Lenguaje: | eng |
| Publicado: |
Banco Central de Chile
2019
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| Materias: | |
| Acceso en línea: | https://hdl.handle.net/20.500.12580/3823 |
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| Sumario: | This paper provides an extremely stylized model of the workings of a global economy where one of its key driving factors is economic agents’ continuous struggle to find assets to park financial resources. This struggle naturally comes with euphoria and disappointments as many of the 'parking lots' are built too quickly are not of the desired size or suddenly collapse. There are also global asymmetries as some countries are endowed with more empty 'land' than others and their growth potential may also differ. I use this caricature of the world economy to describe several of the main driving forces behind recent global macroeconomic events and to discuss suitable economic policy. I also make a series of conjectures about some of the uncertainties and trends that may emerge in the near future. |
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