High Real Interest Rates Under Financial Liberalization Is There A Problem
Download and Read High Real Interest Rates Under Financial Liberalization Is There A Problem full books in PDF, ePUB, and Kindle. Read online free High Real Interest Rates Under Financial Liberalization Is There A Problem ebook anywhere anytime directly on your device. We cannot guarantee that every ebooks is available!
Author | : Vicente Galbis |
Publisher | : International Monetary Fund |
Total Pages | : 94 |
Release | : 1993-01-01 |
Genre | : Business & Economics |
ISBN | : 1451842368 |
Download High Real Interest Rates Under Financial Liberalization Book in PDF, Epub and Kindle
Concerns were raised beginning in the 1980s about the possible detrimental effects of high positive real interest rates under financial liberalization. Using a sample of 28 countries that underwent financial liberalization since the 1970s, the paper examines the evidence about the emergence of high real interest rates and discusses the possible causes and likely effects. Some remedies--preferably preventive--are considered including macroeconormic stabilization, fiscal consolidation, improvements in prudential regulation and supervision of the financial sector, and introduction of an efficient management of indirect monetary policy instruments.
Author | : Fondo Monetario Internacional |
Publisher | : |
Total Pages | : 88 |
Release | : 1993 |
Genre | : |
ISBN | : |
Download High real interest rates under financial liberalization is there a problem? Book in PDF, Epub and Kindle
Author | : Vicente Galbis |
Publisher | : South East Asian Central Banks Research and Training Centre |
Total Pages | : 116 |
Release | : 1998 |
Genre | : Business & Economics |
ISBN | : |
Download High Real Interest Rates Under Financial Liberalisation Book in PDF, Epub and Kindle
Author | : Mr.Bart Turtelboom |
Publisher | : International Monetary Fund |
Total Pages | : 46 |
Release | : 1991-12-01 |
Genre | : Business & Economics |
ISBN | : 1451939183 |
Download Interest Rate Liberalization Book in PDF, Epub and Kindle
This paper undertakes a survey of theoretical considerations and an analysis of the experience of five African countries with interest rate liberalization. Despite substantial progress in monetary policy reforms, liberalization has only partially affected the level and variability of interest rates. Several factors—macroeconomic instability, oligopolistic financial markets, the absence of developed capital markets, as well as the sequencing of the liberalization programs and the asymmetric availability of information—explain the increase in the spread between lending and deposit rates as well as the rather inflexible pattern of interest rates during the transition to a market-based financial system.
Author | : Reuven Glick |
Publisher | : |
Total Pages | : 50 |
Release | : 1988 |
Genre | : Interest rates |
ISBN | : |
Download Financial Liberalization in the Pacific Basin Book in PDF, Epub and Kindle
Author | : International Monetary Fund |
Publisher | : International Monetary Fund |
Total Pages | : 34 |
Release | : 1990-01-01 |
Genre | : Business & Economics |
ISBN | : 1451927606 |
Download Interest Rate Policies, Stabilization, and Bank Supervision in Developing Countries Book in PDF, Epub and Kindle
This paper identifies macroeconomic stability, effective bank supervision, and an appropriate sequencing of stabilization, banking regulations, and interest rate policies as common characteristics of the relatively successful experiments in financial sector liberalization. Recent theoretical developments help to explain why interest rates in free markets for bank credit may fall short of market-clearing levels, or may rise to risky levels with adverse consequences for financial institutions and the economy at large. To prevent such outcomes, macro-economic stabilization and improved bank supervision should generally precede complete removal of control on bank interest rates.
Author | : Patrick Honohan |
Publisher | : |
Total Pages | : 49 |
Release | : 2016 |
Genre | : |
ISBN | : |
Download How Interest Rates Changed Under Financial Liberalization Book in PDF, Epub and Kindle
As financial liberalization progressed, the general level of real interest rates increased more in developing countries than it did in industrial countries. Volatility in wholesale interest rates also jumped, often markedly, in most liberalizing countries. Treasury bill rates and bank spreads showed the greatest increase in developing countries, shifting substantial rents from the public sector and from favored borrowers.Financial liberalization was expected to make interest rates and asset prices more volatile, with distributional consequences such as reduced or relocated rents and increased competition in financial services. Honohan examines available data on money market and bank interest rates for evidence of whether these things happened. He shows that as more and more countries liberalized, the level and dynamic behavior of developing-country interest rates converged to industrial-country norms. In the short term, volatility increased in both real and nominal money market interest rates. Treasury bill rates and bank spreads, evidently the most repressed, showed the greatest increase as liberalization progressed - shifting substantial rents from the public sector and from favored borrowers.Whereas quoted bank spreads in industrial countries contracted somewhat in the late 1990s, spreads in developing countries remained much higher, presumably reflecting both market power and the higher risks of lending in the developing world. There was no clear-cut change in mean rates of inflation, monetary depth, or GDP growth. If anything, there was a small average improvement in inflation, but a decline in monetary depth and economic growth, relative to trends in industrial countries.This paper - a product of Finance, Development Research Group - is part of a larger effort in the group to explore optimal policy under financial liberalization.
Author | : Yilmaz Akyüz |
Publisher | : |
Total Pages | : 58 |
Release | : 1993 |
Genre | : Capital movements |
ISBN | : |
Download Financial Liberalization Book in PDF, Epub and Kindle
Author | : Takatoshi Ito |
Publisher | : University of Chicago Press |
Total Pages | : 441 |
Release | : 2008-09-15 |
Genre | : Business & Economics |
ISBN | : 0226387089 |
Download International Financial Issues in the Pacific Rim Book in PDF, Epub and Kindle
The imbalanced, yet mutually beneficial, trading relationship between the United States and Asia has long been one of international finance’s most perplexing mysteries. Although the United States continues to post a substantial trade deficit—and China reaps the benefits of a surplus—the dollar has yet to sink in the face of ever-increasing account disparities. International Financial Issues in the Pacific Rim explains why the United States enjoys a seemingly symbiotic relationship with its trading partners despite stark inequities in the trade balance, especially with Asia. This timely and well-informed study also debunks the assumed link between economic openness and low inflation in the region, identifies the serious gap between academic and private-sector researchers’ understanding of exchange rate volatility, and analyzes the liberalization of Asian capital accounts. International Financial Issues in the Pacific Rim will have broad implications for global trade and economic policy issues in Asia and beyond.
Author | : Edmar L. Bacha |
Publisher | : International Monetary Fund |
Total Pages | : 34 |
Release | : 2007-12 |
Genre | : Business & Economics |
ISBN | : |
Download Is Brazil Different? Risk, Dollarization, and Interest Rates in Emerging Markets Book in PDF, Epub and Kindle
We investigate the role of financial dollarization in the determination of real interest rates in emerging economies. In a simple analytical model, we show that a strategy of "dedollarizing" the economy, if it fails to address fundamental macroeconomic risks, leads to higher domestic real interest rates. We confirm this prediction in an empirical model, but find that the effect is small after controlling for the risks of dilution and default. Brazil provides a natural case study given its low degree of financial dollarization and very high real interest rates. The estimated model is unable to explain the high interest rate levels in the aftermath of Brazil's 1994 inflation stabilization. However, since the adoption in 1999 of inflation targeting and floating exchange rates, Brazil's real interest rates are gradually converging to the model's predicted values. The estimation also shows that further drops in Brazil's real interest rates could be achieved more effectively through improvements in fundamentals that lead to investment-grade status rather than through financial dollarization.