Mathematical model of economic growth through
restoration of savings

S.M.Guriev

The paper considers a mathematical model of consequences of restoration of savings in Russia according to Bernstam. The model is a general equilibrium one taking into account interaction of households, firms, investment and saving banks, government in real and financial markets. It is shown that if potential productivity in the economy is high enough and financial intermediaries are efficient, the restoration of savings can bring about economic growth, lower inflation and support formation of a healthy financial system in Russia.

Back to Sergei Guriev' homepage.