MIS 4500 Lecture Notes - Robert Barro, Interest Rate Risk, Mental Accounting

• School: University of Manitoba
• Department: Management Info. Systems
• Course: MIS 4500
• Professor: Pourang Irani

Document Summary

Chapter 25: dreaming with brics: the path to 2050. Brics have larger us than g6 in less than 40 yrs; currently only 15% Have less capital, so higher returns on capital, resulting in higher growth of capital stock. Countries grow richer on back of appreciating currencies; convergence to ppp. Gdp growth: growth in employment; growth in capital stock; technical progress/tfp. Maybe lower convergence in india and brazil than russia and china b/c lower education levels and poorer infrastructure. Maybe 1/3 of increase in us of brics from rising currencies and 2/3s from faster growth. Robert barro: higher schooling, higher life expectancy, lower fertility, lower gov"t consumption, better maintenance of rule of law, lower inflation, improvements in terms of trade. Macro stability: price stability (fiscal deficit reduction, tighter monetary policy, exchange-rate realignment) Institutions: efficient legal system, functioning markets, health and education systems, financial institutions and gov"t bureaucracy.