Interest Rate Deregulation: A Brief Survey of the Policy Issues and the Asian Experience

Date: July 1994
Type: Papers and Briefs
Subject:
Series: EDRC Occasional Papers
Author: Glower, Carlos J.

Description

This paper examines the experiences of a group of Asian countries and the policies that they have implemented as part of their financial sector reforms, policies which have allowed greater flexibility in the adjustment of interest rates. The conclusion is that the experiences in Asian countries indicate that a properly designed interest rate policy tends to lead to a deepening and widening of their financial savings.

Contents

  • Foreword
  • Introduction
  • Basic Considerations
  • Price Policy: Interest Rates
  • Interest Rate Deregulation: Experience and Policy Issues
  • Lessons Learned
    • A. Macroeconomic Environment and Policy
    • B. Interest Rate Variability
    • C. Banking Deregulation and Supervision
  • Summary and Conclusions