The Puzzle of Persistently Negative Interest Rate-Growth Differentials : Financial Repression or Income Catch-Up? /

The interest rate-growth differential (IRGD) shows a marked correlation with GDP per capita. It has been on average around 1 percentage point for large advanced economies during 1999-2008; but below -7 percentage points among non-advanced economies - exerting a powerful stabilizing influence on gove...

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Bibliografische gegevens
Hoofdauteur: Shabunina, Anna
Andere auteurs: Escolano, Julio, Woo, Jaejoon
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2011.
Reeks:IMF Working Papers; Working Paper ; No. 2011/260
Online toegang:Full text available on IMF
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100 1 |a Shabunina, Anna. 
245 1 4 |a The Puzzle of Persistently Negative Interest Rate-Growth Differentials :   |b Financial Repression or Income Catch-Up? /  |c Anna Shabunina, Julio Escolano, Jaejoon Woo. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2011. 
300 |a 1 online resource (29 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a The interest rate-growth differential (IRGD) shows a marked correlation with GDP per capita. It has been on average around 1 percentage point for large advanced economies during 1999-2008; but below -7 percentage points among non-advanced economies - exerting a powerful stabilizing influence on government debt ratios. We show that large negative IRGDs are largely due to real interest rates well below market equilibrium - possibly stemming from financial repression and captive and distorted markets, whereas the income catch-up process plays a relatively modest role. We find econometric support for this conjecture. Therefore, the IRGD in non-advanced economies is likely to rise with financial integration and market development, well before their GDP per capita converges to advanced-economy levels. 
538 |a Mode of access: Internet 
700 1 |a Escolano, Julio. 
700 1 |a Woo, Jaejoon. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2011/260 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2011/260/001.2011.issue-260-en.xml  |z IMF e-Library