Fourth, banking industry faced a high tax rate of 58 percent while the rest of the corporate sector paid only 35 percent. This high punitive rate along with the burden of stuck loans and inefficiency of the staff was passed on to the customers in form of high lending rates and low deposit rates.
Variables in the foreign country are denoted with an asterisk. In each country, the national accounting identity specifies that output, y, is equal to the sum of absorption d and net exports nx, that is: y = d + nx, y ∗ = d ∗ − nx,  where the second equation incorporates the global resource constraint that nx + nx* = 0.