Date Published:
Jun 01, 1989
Category:
Working Papers
Focus Area(s):
Code:
WP 1989-06

How are interest rates determined in an open economy after financial liberalization has taken place? This is the main question that this paper attempts to answer. Utilizing a model adopted from Edwards and Khan, the author explains how interest rates are determined by both domestic monetary conditions and external factors once the financial sector is liberalized.



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