The Direct Costs of Financial Repression: Evidence From India
- 1 May 1997
- journal article
- Published by MIT Press in The Review of Economics and Statistics
- Vol. 79 (2) , 311-320
- https://doi.org/10.1162/003465397556665
Abstract
This paper provides evidence that suggests that financial repression has substantial direct effects on financial development, independently of its well-known influence through the level of the real interest rate. It also demonstrates that the process of economic growth is not weakly exogenous with respect to financial development. Thus financial repression may impose real costs that are additional to those suggested by previous empirical studies.Keywords
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This publication has 4 references indexed in Scilit:
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- BANKING SECTOR POLICIES AND FINANCIAL DEVELOPMENT IN NEPALOxford Bulletin of Economics and Statistics, 1996
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- DEFICITS, INFLATION, AND THE BANKING SYSTEM IN DEVELOPING COUNTRIES: THE OPTIMAL DEGREE OF FINANCIAL REPRESSIONOxford Economic Papers, 1992