The puzzle of persistently negative interest rate-growth differentials : financial repression or income catch-up? /

The puzzle of persistently negative interest rate-growth differentials : financial repression or income catch-up? /

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Bibliographic Details
Author / Creator:	Escolano, Julio, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2011.
Description:	1 online resource (30 pages) : illustrations
Language:	English
Series:	IMF working paper ; WP/11/260 IMF working paper ; WP/11/260.
Subject:	Interest rates -- Econometric models. Economic development -- Econometric models. Economic development -- Econometric models. Interest rates -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/13510761

Hidden Bibliographic Details
Other authors / contributors:	Shabunina, Anna, author. Woo, Jaejoon, author. International Monetary Fund. Fiscal Affairs Department, issuing body.
ISBN:	1283557754 9781283557757 9781463942908 1463942907 1463984898 9781463984892 1463975708 9781463975708 9786613870209 661387020X
Notes:	At head of title: Fiscal Affairs Department. Title from PDF title page (IMF Web site, viewed November 28. 2011). "November 2011." Includes bibliographical references. English.
Summary:	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.
Other form:	Print version: Shabunina, Anna. Puzzle of Persistently Negative Interest Rate-Growth Differentials: Financial Repression or Income Catch-Up? Washington : International Monetary Fund, ©2011 9781463924553
Standard no.:	10.5089/9781463984892.001

Description
Summary:	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.
Item Description:	At head of title: Fiscal Affairs Department. Title from PDF title page (IMF Web site, viewed November 28. 2011). "November 2011."
Physical Description:	1 online resource (30 pages) : illustrations
Bibliography:	Includes bibliographical references.
ISBN:	1283557754 9781283557757 9781463942908 1463942907 1463984898 9781463984892 1463975708 9781463975708 9786613870209 661387020X