This paper analyzes the apparent contradiction between two strands of the literature on the effects of financial intermediation on economic activity. On the one hand, the empirical growth literature finds a positive effect of measures of private domestic credit and liquid liabilities on per capita GDP growth. This is interpreted as the growth enhancing effect of financial development (e.g., King and Levine, 1993; Levine, Loayza, and Beck, 2000). On the other hand, the banking and currency crisis literature finds that monetary aggregates, such as domestic credit, are among the best predictors for crises (e.g., Demirguc-Kunt and Detragiache 1998 and 2000; Gourinchas, Landerretche, and Valdés, 2001; Kaminsky and Reinhart, 1999). Since banking crises usually lead to recessions, an expansion of domestic credit would then be associated with growth slowdowns.
A similar divide exists at the theoretical level. According to the endogenous growth literature, financial deepening leads to a more efficient allocation of savings to productive investment projects (see Greenwood and Jovanovic, 1990; Bencivenga and Smith, 1991). Conversely, the financial crisis literature points to the destabilizing effect of financial liberalization as it may lead to an unduly large expansion of credit. Overlending may occur owing to a number of factors, including a limited monitoring capacity of regulatory agencies, the inability of banks to discriminate good projects during investment booms, and the existence of an explicit or implicit insurance against banking failures (Schneider and Tornell, 2004; Aghion, Bacchetta and Banerjee, forthcoming). Not surprisingly, each strand of the literature has produced its own set of policy implications. Thus, researchers who emphasize the findings of the endogenous growth literature advocate financial liberalization and deepening (e.g., Roubini and Sala-i-Martin, 1992), whereas those who concentrate on crises caution against “excessive” financial liberalization (e.g., Balino and Sundarajan, 1991; Gavin and Hausmann, 1995).
The book starts with a fairly simple overview of the translation process, of the constituent parts of a compiler, and of the concepts of porting and bootstrapping compilers. This is followed by a chapter on machine architecture and machine emulation, as later case studies make extensive use of code generation for emulated machines, a very common strategy in introductory courses. The next chapter introduces the student to the notions of regular expressions, grammars, BNF and EBNF, and the value of being able to specify languages concisely and accurately.
Two chapters follow that discuss simple features of assembler language, accompanied by the development of an assembler/interpreter system which allows not only for very simple assembly, but also for conditional assembly, macro-assembly, error detection, and so on. Complete code for such an assembler is presented in a highly modularized form, but with deliberate scope left for extensions, ranging from the trivial to the extensive.
Three chapters follow on formal syntax theory, parsing, and the manual construction of scanners and parsers. The usual classifications of grammars and restrictions on practical grammars are discussed in some detail. The material on parsing is kept to a fairly simple level, but with a thorough discussion of the necessary conditions for LL(1) parsing. The parsing method treated in most detail is the method of recursive descent, as is found in many Pascal compilers; LR parsing is only briefly discussed.
The UN Stiglitz Commission of Experts on Reforms of the International Monetary and Financial System posits that economic globalisation has produced increasing income inequality both within and between countries. Widening inequality has important consequences for the evolution and resolution of the current financial and economic crisis.
This paper draws on academic literature and documentation regarding the current debate surrounding the global financial crisis. It analyses how a combination of wealth inequality within countries and imbalances between countries has contributed to financial instability and the recent crisis. It is structured in five sections. After the introduction, the second section looks at how within country inequality and polarisation contribute to financial instability.
