Posted by admin | Posted in Finance | Posted on 30-03-2009
Tags: Advantage, Boom, Financial Sector
I think financial liberalization is useless if your economy is overheating as it will create a boom and an overheating economy doesn’t need more growth in the short term. Therefore, reform should be made when the economy is not growing fast as we would like.
Is this true?
Therefore, if your economy is growing very fast to the point of overheating, there is no advantage in liberalizing the financial sector in the short term, as it would only worsen the overheating.
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