1st Edition

Financial Liberalization and Investment

By Kanhaya Gupta, Robert Lensink Copyright 1996

    For two decades thinking on economic policy has been dominated by the idea of economic liberalization in general and financial deregulation in particular. This field has become both extensive and controversial, yet there is no single book which treats financial deregulation in a complete and coherent manner.
    This book rectifies the shortfall by focusing specifically on the consequences of interest rate deregulation for the real sectors of the economy. Using both analytical and simulation models the behaviour of consumers, firms, banks, informal credit markets and governments is examined with a view to providing guidance on a number of controversial issues.

    Chapter 1. Introduction, Chapter 2. The Base Model, Chapter 3. Role of Foreign Aid and the Government, Chapter 4. The Role of Informal Financial Markets, Chapter 5. Allocative Efficiency and Financial Deregulation, Chapter 6. Banking Efficiency and Private Investment, Chapter 7. Some Simulation Results, Chapter 8. Financial Repression and Fiscal Policy, Chapter 9. Summing Up


    Kanhaya Gupta, Robert Lensink