Interest Rates, Credit Rationing, and Investment in Developing Countries:
This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that mimics the financial sectors prevailing in most low-income developing countries. The paper emphasizes the importance of treating the lending and deposit rates of interest as distinct p...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2003
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Schriftenreihe: | IMF Working Papers
Working Paper No. 03/63 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that mimics the financial sectors prevailing in most low-income developing countries. The paper emphasizes the importance of treating the lending and deposit rates of interest as distinct parameters in investment equations. The spread between the two rates is indicative of default risk and has a negative impact on incremental loan amounts associated with higher lending rates, in particular in economies with flawed institutions. The model presented in the paper highlights the importance of promoting macroeconomic stability and upgrading institutions and informational infrastructure |
Beschreibung: | 1 Online-Ressource (31 p) |
ISBN: | 1451848447 9781451848441 |
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spelling | Nkusu, Mwanza Verfasser aut Interest Rates, Credit Rationing, and Investment in Developing Countries Nkusu, Mwanza Washington, D.C International Monetary Fund 2003 1 Online-Ressource (31 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 03/63 This paper examines the impact of interest rates and inflation on bank loans and investment within a framework that mimics the financial sectors prevailing in most low-income developing countries. The paper emphasizes the importance of treating the lending and deposit rates of interest as distinct parameters in investment equations. The spread between the two rates is indicative of default risk and has a negative impact on incremental loan amounts associated with higher lending rates, in particular in economies with flawed institutions. The model presented in the paper highlights the importance of promoting macroeconomic stability and upgrading institutions and informational infrastructure Online-Ausg http://elibrary.imf.org/view/IMF001/03648-9781451848441/03648-9781451848441/03648-9781451848441.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Nkusu, Mwanza Interest Rates, Credit Rationing, and Investment in Developing Countries |
title | Interest Rates, Credit Rationing, and Investment in Developing Countries |
title_auth | Interest Rates, Credit Rationing, and Investment in Developing Countries |
title_exact_search | Interest Rates, Credit Rationing, and Investment in Developing Countries |
title_exact_search_txtP | Interest Rates, Credit Rationing, and Investment in Developing Countries |
title_full | Interest Rates, Credit Rationing, and Investment in Developing Countries Nkusu, Mwanza |
title_fullStr | Interest Rates, Credit Rationing, and Investment in Developing Countries Nkusu, Mwanza |
title_full_unstemmed | Interest Rates, Credit Rationing, and Investment in Developing Countries Nkusu, Mwanza |
title_short | Interest Rates, Credit Rationing, and Investment in Developing Countries |
title_sort | interest rates credit rationing and investment in developing countries |
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