Relative Price Stability, Creditor Rights, and Financial Deepening

The paper provides a theoretical and cross-country empirical analysis of the determinants of financial deepening, and finds that higher credit-to-GDP ratios are associated with stronger creditor rights and lower inflation, and that the marginal effect of improvements in creditor rights protection is...

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Bibliographic Details
Main Author: Druck, Pablo
Other Authors: Dehesa, Mario, Plekhanov, Alexander
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2007
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Relative Price Stability, Creditor Rights, and Financial Deepening  |c Pablo Druck, Alexander Plekhanov, Mario Dehesa 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2007 
300 |a 21 pages 
651 4 |a Costa Rica 
653 |a Depository Institutions 
653 |a Inflation 
653 |a Credit 
653 |a Banks 
653 |a Labour 
653 |a Banks and banking 
653 |a Monetary economics 
653 |a Self-employed 
653 |a Deflation 
653 |a Monetary Policy, Central Banking, and the Supply of Money and Credit: General 
653 |a Micro Finance Institutions 
653 |a Mortgages 
653 |a Labor 
653 |a Domestic credit 
653 |a Price Level 
653 |a Banks and Banking 
653 |a Self-employment 
653 |a Labor Demand 
653 |a Prices 
653 |a Macroeconomics 
653 |a Banking 
653 |a Money and Monetary Policy 
653 |a Income economics 
700 1 |a Dehesa, Mario 
700 1 |a Plekhanov, Alexander 
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989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
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082 0 |a 330 
520 |a The paper provides a theoretical and cross-country empirical analysis of the determinants of financial deepening, and finds that higher credit-to-GDP ratios are associated with stronger creditor rights and lower inflation, and that the marginal effect of improvements in creditor rights protection is declining as the rate of inflation increases. The analysis suggests that in a high inflation environment, controlling inflation and reducing macroeconomic volatility should be given priority. Once these goals are achieved, the focus of attention should shift to creditor rights protection and credit information management