The impact of the recent Asian financial crisis on global economic adjustment
and its implication for US agriculture using a multi-country, multi-sector
dynamic intertemporal general equilibrium model with endogeneously modeled
financial markets is investigated. The simulation results show that the crisis
in Asia reduces not only US exports but also interest rates and the cost of
intermediate inputs of production, stimulating US domestic economic activity in
interest-sensitive sectors, and driving up demand for agriculture products.
However, this stimulus of domestic demand may or may not offset the negative
impact of declining exports.
JEL Codes: D58, F17, F30
Full article available from Japanese Economic Review.
The Chinese leadership has promised for years that reform was around the bend and then you see things like President Xi’s speech where he emphasized the central role of the party... Members of the business community see the Trump administration as an opportunity for the U.S. to rattle the cage in Beijing.