Optimal Fiscal Policy and Government Provision of Contingent Liabilities PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Optimal Fiscal Policy and Government Provision of Contingent Liabilities PDF full book. Access full book title Optimal Fiscal Policy and Government Provision of Contingent Liabilities by International Monetary Fund. Download full books in PDF and EPUB format.

Optimal Fiscal Policy and Government Provision of Contingent Liabilities

Optimal Fiscal Policy and Government Provision of Contingent Liabilities PDF Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451954336
Category : Business & Economics
Languages : en
Pages : 28

Book Description
The optimal provision of loan guarantees or deposit insurance is examined in the context of an overlapping generations model. It is demonstrated that even in the face of a market imperfection that precludes diversification of the private sector’s loan portfolio to eliminate risk, full government guarantee of private sector loans (or deposits) is suboptimal. The results of the paper suggest that although some degree of guarantee is appropriate, the design of such policies should be tempered to avoid an inefficient level of capital accumulation.
➤