Inflation and financial depth /
Khan, Mohsin S.
Inflation and financial depth / prepared by Moshin S. Khan, Abdelhak S. Senhadji and Bruce D. Smith. - Washington, D.C. : International Monetary Fund, 2001 - 30 p. - IMF working paper ; no. WP/01/44 .
Bibliografía: p. 28-30.
There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relashionship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally between 3 and 6 percent a year, depending on the specific measure of financial depth that is used.
INFLACION
MERCADOS FINANCIEROS
332.41
Inflation and financial depth / prepared by Moshin S. Khan, Abdelhak S. Senhadji and Bruce D. Smith. - Washington, D.C. : International Monetary Fund, 2001 - 30 p. - IMF working paper ; no. WP/01/44 .
Bibliografía: p. 28-30.
There is now a substantial theoretical literature arguing that inflation impedes financial deepening. Furthermore, it has been hypothesized that the relashionship is a nonlinear one, in that there is a threshold level of inflation below which inflation has a positive effect on financial depth, but above which the effect turns negative. Using a large cross-country sample, empirical support is found for the existence of such a threshold. The estimates indicate that the threshold level of inflation is generally between 3 and 6 percent a year, depending on the specific measure of financial depth that is used.
INFLACION
MERCADOS FINANCIEROS
332.41