The Puzzle of Persistently Negative Interest Rate-Growth Differentials : Financial Repression or Income Catch-Up? »
Series: IMF Working Papers
Author(s): Anna Shabunina , Julio Escolano , and Jaejoon Woo
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 November 2011
Keywords: interest rate-growth differential, debt dynamics, dynamic efficiency, income catch-up, financial repression, inflation, government debt, real interest rate, private credit, Money And Interest Rates
The interest rate-growth differential (IRGD) shows a marked correlation with GDP per capita. It has been on average around 1 percentage point for large advanced economies during 1999-2008; but below -7 percentage p...