Interest Rate Repression Around the World

Interest Rate Repression Around the World

Financial repression resurfaced in the wake of the global financial crisis and may become a common feature in the post Coronavirus 2019 (COVID-19) world. To advance knowledge and inform policy advice, this paper presents a new database on interest...

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Bibliographic Details
Main Authors: Calice, Pietro, Diaz Kalan, Federico, Masetti, Oliver
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
INTEREST RATE
FINANCIAL CRISIS
LENDING RESTRICTION
CENTRAL BANK
RESERVE REQUIREMENT
FINANCIAL LIBERALIZATION
FINANCIAL REGULATION
FINANCIAL REPRESSION
PANDEMIC IMPACT
Online Access:http://documents.worldbank.org/curated/en/841621602741042770/Interest-Rate-Repression-Around-the-World
http://hdl.handle.net/10986/34672
id okr-10986-34672
recordtype oai_dc
spelling okr-10986-346722021-05-25T09:58:48Z Interest Rate Repression Around the World Calice, Pietro Diaz Kalan, Federico Masetti, Oliver INTEREST RATE FINANCIAL CRISIS LENDING RESTRICTION CENTRAL BANK RESERVE REQUIREMENT FINANCIAL LIBERALIZATION FINANCIAL REGULATION FINANCIAL REPRESSION PANDEMIC IMPACT Financial repression resurfaced in the wake of the global financial crisis and may become a common feature in the post Coronavirus 2019 (COVID-19) world. To advance knowledge and inform policy advice, this paper presents a new database on interest rate controls, a popular form of financial repression, based on a survey with 108 countries representing 88 percent of global gross domestic product (GDP). The data cover such aspects of interest rate controls as types of controls, legal basis, intended objectives, methodologies, and enforcement rules. In an attempt to provide a meaningful characterization of the data, this paper also provides a preliminarily estimate of the degree of bindingness of the interest rate control regime in a country and presents simple correlations with other financial repression policies. The paper finally discusses general principles of an interest rate management policy that can minimize adverse side effects of binding controls while laying down the basis for a smooth transition or return to market determined interest rates. 2020-10-27T18:56:25Z 2020-10-27T18:56:25Z 2020-10-15 Working Paper http://documents.worldbank.org/curated/en/841621602741042770/Interest-Rate-Repression-Around-the-World http://hdl.handle.net/10986/34672 English Equitable Growth, Finance and Institutions Insight; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic INTEREST RATE
FINANCIAL CRISIS
LENDING RESTRICTION
CENTRAL BANK
RESERVE REQUIREMENT
FINANCIAL LIBERALIZATION
FINANCIAL REGULATION
FINANCIAL REPRESSION
PANDEMIC IMPACT
spellingShingle INTEREST RATE
FINANCIAL CRISIS
LENDING RESTRICTION
CENTRAL BANK
RESERVE REQUIREMENT
FINANCIAL LIBERALIZATION
FINANCIAL REGULATION
FINANCIAL REPRESSION
PANDEMIC IMPACT
Calice, Pietro
Diaz Kalan, Federico
Masetti, Oliver
Interest Rate Repression Around the World
relation Equitable Growth, Finance and Institutions Insight;
description Financial repression resurfaced in the wake of the global financial crisis and may become a common feature in the post Coronavirus 2019 (COVID-19) world. To advance knowledge and inform policy advice, this paper presents a new database on interest rate controls, a popular form of financial repression, based on a survey with 108 countries representing 88 percent of global gross domestic product (GDP). The data cover such aspects of interest rate controls as types of controls, legal basis, intended objectives, methodologies, and enforcement rules. In an attempt to provide a meaningful characterization of the data, this paper also provides a preliminarily estimate of the degree of bindingness of the interest rate control regime in a country and presents simple correlations with other financial repression policies. The paper finally discusses general principles of an interest rate management policy that can minimize adverse side effects of binding controls while laying down the basis for a smooth transition or return to market determined interest rates.
format Working Paper
author Calice, Pietro
Diaz Kalan, Federico
Masetti, Oliver
author_facet Calice, Pietro
Diaz Kalan, Federico
Masetti, Oliver
author_sort Calice, Pietro
title Interest Rate Repression Around the World
title_short Interest Rate Repression Around the World
title_full Interest Rate Repression Around the World
title_fullStr Interest Rate Repression Around the World
title_full_unstemmed Interest Rate Repression Around the World
title_sort interest rate repression around the world
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/841621602741042770/Interest-Rate-Repression-Around-the-World
http://hdl.handle.net/10986/34672
_version_ 1764481402226606080

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