Financial liberalisation and inflationary dynamics in the context of a small open economy

dc.contributor.authorGupta, Rangan
dc.contributor.emailrangan.gupta@up.ac.zaen
dc.date.accessioned2007-07-13T07:06:37Z
dc.date.available2007-07-13T07:06:37Z
dc.date.issued2006-03
dc.description.abstractThis paper develops a short-term model of a small open financially repressed economy characterised by unorganised money markets, intermediate goods imports, capital mobility and flexible exchange rates. The analysis shows that financial liberalisation, in the form of increased rate of interest on deposits and tight monetary policy, causes deflation for an economy with a high degree of capital mobility. However, for economies with a low degree of capital mobility, the possibility of stagflation cannot be ruled out. These results suggest that financial liberalisation in the form of lower reserve requirements should be recommended for economies with restricted transactions in the capital account.en
dc.format.extent264464 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.citationGupta, R 2006, 'Financial liberalisation and inflationary dynamics in the context of a small open economy', South African Journal of Economic and Management Sciences, vol. 9, no. 1, pp. 89-101. [http://www.journals.co.za/ej/ejour_ecoman.html]en
dc.identifier.issn1015-8812
dc.identifier.urihttp://hdl.handle.net/2263/3006
dc.language.isoenen
dc.publisherFaculty of Economic and Management Sciences University of Pretoriaen
dc.rightsFaculty of Economic and Management Sciences University of Pretoriaen
dc.subjectSmall open economyen
dc.subjectMoney marketsen
dc.subjectImportsen
dc.subjectCapital mobilityen
dc.subjectExchange ratesen
dc.subjectFinancial liberalizationen
dc.subject.lcshDeveloping countries -- Economic conditionsen
dc.titleFinancial liberalisation and inflationary dynamics in the context of a small open economyen
dc.typePostprint Articleen

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Gupta_Financial(2006).pdf
Size:
258.27 KB
Format:
Adobe Portable Document Format

License bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
2.42 KB
Format:
Item-specific license agreed upon to submission
Description: