Saving and the real interest rate in developing countries.: An article from: Finance & Development

This digital document is an article from Finance & Development, published by International Monetary Fund on December 1, 1995. The length of the article is 2925 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: The effectiveness of raising real interest rates as a means of increasing private saving in developing countries is examined. Although this approach has often been cited as a way of stimulating saving and thus providing resources for growth, evidence is found that it will not work in the poorest Third World nations where consumption choices are heavily influenced by subsistence considerations. Findings provide empirical support to the hypothesis that the saving rate and its sensitivity to interest rate changes are rising functions of income. It can therefore be concluded that the same policies implemented in different countries could produce very different outcomes, depending on the country's development level.

Citation Details
Title: Saving and the real interest rate in developing countries.
Author: Jonathan D. Ostry
Publication:Finance & Development (Magazine/Journal)
Date: December 1, 1995
Publisher: International Monetary Fund
Volume: v31 Issue: n4 Page: p16(3)

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