Speaker: Jin Hao, Assistant Professor, Department of International Economics and Trade, Xiamen University
Date: March 30, 2017
Time: 2:30 pm- 4:00 pm
Location: B423 Juxian Lecture Hall, Zhixin Building, Central Campus
Sponsor: the School of Economics
We develop a two-sector, core-periphery country general equilibrium framework with endogenous financial crises and argue for coordination on foreign asset accumulations among emerging market economies (EMEs). We show that a national planner in each peripheral country prefers a higher foreign asset position than the decentralized agents. This is consistent with the policy prescription derived in Bianchi (2011). However, a coordinator for all peripheral countries, who internalizes the effect of aggregate peripheral savings on the world interest rate, prefers a lower foreign asset position relative to the national planner. We find that uncoordinated foreign asset accumulations may even be inferior to decentralized equilibrium once we allow for a variable world interest rate. Our quantitative analysis shows that the coordinated level of net foreign assets for the peripheral countries is only 56% that of the uncoordinated level.
Dr. Jin Hao completed his Ph.D. from Indiana University in 2016. He is currently assistant professor of Wang Yanan Institute for Studies in Economics (WISE) and School of Economics, Xiamen University. His main research interests include Macroeconomics, International Economics and Monetary Economics. He has published in top journals such as Journal of Translation From Foreign Literatures, Journal of Capital University of Economics and Business.
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Edited by: Liu Huan