Saving and real interest rates in developing countries

Carmen Reinhart and Jonathan Ostry

MPRA Paper from University Library of Munich, Germany

Abstract: Raising real interest rates has been cited as a way to increase private saving,and thus provide the resources for growth. But this may not be a viable approach in the poorest developing countries in which most people live at subsistence level. In these situations, consumption is not very responsive to fluctuations in real interest rates and financial liberalization my not be the catalyst to higher higher saving rates.

Keywords: saving; development; liberalization; interest; rates (search for similar items in EconPapers)
JEL-codes: D11 D12 O1 (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (7)

Published in Finance and Development 4.32(1995): pp. 16-18

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Related works:
Working Paper: El ahorro y 1a tasa de interes real en los paises en desarrollo (1995)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13352

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