Advanced Search
MyIDEAS: Login

Real interest rates and growth: Improving on some deflating experiences

Contents:

Author Info

  • Huw Pill
Registered author(s):

Abstract

Tests of the McKinnon-Shaw hypothesis typically investigate the relationship between real interest rates and growth. Recent work has concluded that this relationship may be non-monotonic. This article investigates the role of real interest rate mismeasurement in explaining these non-monotonicities. When such mismeasurement is systematically related to growth, it will produced biased empirical results. After addressing these biases, the article demonstrates that financial liberalisation may offer substantial economic gains. In an 'average' country, raising real interest rates from -25 per cent to five per cent will increase real annual per capita GDP growth from zero to a relatively robust rate of two per cent.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.tandfonline.com/doi/abs/10.1080/00220389708422504
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 34 (1997)
Issue (Month): 1 ()
Pages: 85-110

as in new window
Handle: RePEc:taf:jdevst:v:34:y:1997:i:1:p:85-110

Contact details of provider:
Web page: http://www.tandfonline.com/FJDS20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/FJDS20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Maslov, Alexander, 2011. "Inflationary Handicap Of The Monetary Transmission Mechanism: Evidence From Russia," MPRA Paper 50036, University Library of Munich, Germany, revised 12 Apr 2012.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:jdevst:v:34:y:1997:i:1:p:85-110. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.