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Should Latin America save more to grow faster ? (الإنجليزية)

A widely shared view holds that there is no policy-exploitable causal connection from saving to growth because domestic saving is fully endogenous, optimally determined, or substitutable by foreign saving. Yet, abandoning these assumptions, which are questionable in the real world of frictions, leads to three channels through which domestic saving may promote growth: a real interest rate channel, whereby saving reduces the cost of capital (the sovereign...
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