首页 | 本学科首页   官方微博 | 高级检索  
     检索      


Interest rate policy,effective demand,and growth in LDCs
Authors:Burkett Paul  Amitava Krishna Dutt
Institution:1. University of Miami;2. University of Notre Dame , Indiana
Abstract:Orthodox criticisms of ‘financial repression’ in LDCs argue that interest rate liberalization promotes investment and economic growth by increasing the supply of bank credit and improving the efficiency of credit allocation. The present paper develops a Kaleckian model in which increases in deposit interest rates may lower investment and growth by placing downward pressure on effective demand – even if interest rate liberalization results in decreased borrowing costs. The focus of the Kaleckian model on effective demand issues is then contrasted with prior criticisms of the proliberalization view. Finally, the relevance of the Kaleckian approach is demonstrated in connection with the important role of effective demand and distributional effects in the failure of the Chilean financial liberalization to promote a stable growth of output and investment.
Keywords:
设为首页 | 免责声明 | 关于勤云 | 加入收藏

Copyright©北京勤云科技发展有限公司  京ICP备09084417号