Inflation and Financial Depth, Issues 2001-2044

Front Cover
International Monetary Fund, 2001 - Bolsas de valores - 30 pages
There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relationship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally between 3 and 6 percent a year, depending on the specific measure of financial depth that is used.
 

What people are saying - Write a review

We haven't found any reviews in the usual places.

Contents

Introduction
3
Model Specification and Estimation
11
Conclusions
17
Scatter Plot of Inflation and Financial Depth
23
Copyright

Other editions - View all

Common terms and phrases

Bibliographic information