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Financial liberalization in developing countries (Inglés)

In the McKinnon and Shaw analysis, financial liberalization is defined to mean the establishment of higher interest rates that equate the demand for, and the supply of, savings. It expresses the views that higher interest rates will lead to increased savings and financial intermediation as well as to improvements in the efficiency of using savings. Balassa summarizes available empirical evidence, indicating that higher real interest rates increase...
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