Jiaqian Chen and Patrick Imam
IMF WP/11/114
We first illustrate that emerging markets (EMs) face a shortage of financial assets, with financial assets not growing as rapidly as domestic savings. We then estimate the asset shortage in EMs for 1995–2008. We develop a model that explains how asset shortage develop, and then econometrically estimate the causes of asset shortages. We conclude with policy implications.
URL: http://www.imf.org/external/pubs/ft/wp/2011/wp11114.pdf
Courtesy: IMF