01848cas a2200253 a 4500 AALejournalIMF008248 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451851458 1018-5941 BD-DhAAL BD-DhAAL Ghosh, Atish. The Savings Trap and Economic Take-Off / Atish Ghosh, Carlos Asilis. Washington, D.C. : International Monetary Fund, 1992. 1 online resource (55 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We develop an overlapping generations model of a developing economy in which 'culture' and technology interact to determine savings, investment and growth. Investment is assumed to involve intermediation or other costs which may, in each period, result in either of two stable equilibria for the savings rate. At the 'good' equilibrium, savings and growth are higher than at the 'bad' equilibrium, whether the country attains the good or bad equilibrium in any period depends on each individual's belief about the savings behavior of other agents in the economy. The model implies that fiscal policy or public activities to facilitate private investment can influence saving. In particular, a sustained period of fiscal restraint can shift the economy onto a higher savings and growth path. Mode of access: Internet Asilis, Carlos. IMF Working Papers; Working Paper ; No. 1992/091 Full text available on IMF http://elibrary.imf.org/view/journals/001/1992/091/001.1992.issue-091-en.xml IMF e-Library