This paper explores an important aspect of the developmental state, namely its ability to raise the level of savings in the domestic economy. This focus on capital accumulation deliberately re-emphasises an almost forgotten virtue: thrift. In East Asia, the state-versus-market debate tends to...

Collapsing credit markets have been blamed for the depth and persistence of the Great Depression in the United States. Could similar mechanisms have played a role in ending the East Asian economic miracle - and in creating fragility in global financial markets? After a brief account of the...

This paper develops an analytical framework for the analysis of adjustment to adverse shocks in the presence of limited access to the international credit market. We consider an economy producing traded and non-traded goods and experiencing a permanent, unanticipated drop in the availability of...