Financial Liberalization, Debt Mismatch, Allocative Efficiency, and Growth

• 成果类型: Article
• 署名作者: Ranciere, Romain; Tornell, Aaron
• 署名单位: Paris School of Economics; University of California System; University of California Los Angeles
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20130190
• 发表日期: 2016
• 页码: 1-44
• 关键词: capital account liberalization; developing-countries; banking crises; credit booms; misallocation; PRODUCTIVITY; guarantees; maturity; improve; POLICY

摘要

Financial liberalization increases growth, but leads to more crises and costly bailouts. We present a two-sector model in which liberalization, by allowing debt-denomination mismatch, relaxes borrowing limits in the financially constrained sector, but endogenously generates crisis risk. When regulation restricts external financing to standard debt, liberalization preserves financial discipline and may increase allocative efficiency, growth, and consumption possibilities. By contrast, under unfettered liberalization that also allows uncollateralized option-like liabilities, discipline breaks down, and efficiency falls. The model yields a testable gains-from-liberalization condition, which holds in emerging markets. It also helps rationalize the contrasting experience of emerging markets and the recent US housing crisis.