Excerpt
Excerpt
Crowding Out Redefined: The Role of Reserve Accumulation. Carmen Reinhart, Takeshi Tashiro, November 2013, Paper. "It is well understood that investment serves as a shock absorber at the time of crisis. The duration of the drag on investment, however, is perplexing. For the nine Asian economies we focus on in this study, average investment/GDP is about 6 percentage points lower during 1998-2012 than its average level in the decade before the crisis; if China and India are excluded, the estimated decline exceeds 9 percent. We document how in the wake of crisis home bias in finance usually..." (May require user account or purchase) Link