Second, however, such high incentives may not be conducive to macroeconomic stability, in particular when local governments have considerable influence over the banking system. Third, the central government’s authority in appointing provincial leaders induces a tradeoff between macro stability and development: while it is not so good for local non-state sector development, it plays a role in maintaining macro stability. Therefore, there is a complexity of the relationship between micro incentives and macro stability.
US president-elect Joe Biden wants to massively increase investment in everything from clean energy to
- 01/22/2021
- Network Papers