This paper addresses the questions of whether lending rates which are administratively set, should be made uniform across sectors or whether they should differ. Secondly, it asks what the effects are of a partial interest rate liberalization. The paper argues that if governments need to set interest rates at all, they should set different rates to different sectors depending upon differential risks. Interest rate differentials should be increasing...
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INFORMATION
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1986/11/30
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Document de travail départemental
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CPD8643
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1
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1
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2017/11/15
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Disclosed
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Interest rate management in a multisector economy : theory and country expectations
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