Interest rate restrictions policy: possibilities and consequences for Ukraine

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Date
2014
Authors
Mertens, Alexander
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Abstract
This paper investigates historical examples and experience o f interest rate restrictions, consequences o f such policies for economy, reasons and outcomes o f easing IIR policies as well as possibilities, possible outcomes and recommendations regarding IRR policy in Ukraine. It might be concluded that though some sort of “anti-usury ” restrictions can be reasonable, administrative regulation (ceiling) o f interest rate level will generate more negative than positive consequences for the economy and Mill unlikely be effective. Authorities shotild concentrate on more “thoughtful ” regulations which would constraint information asymmetry, provide balanced monetary policy and develop important modern segments offinancial markets.
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Keywords
монетарна політика, фінансові ринки, лихварство, обмеження процентних ставок, interest rate restrictions, monetary policy, interest rate ceiling, usury laws
Citation
Mertens, O. Interest rate restrictions policy: possibilities and consequences for Ukraine / O. Mertens. // Наукові записки НаУКМА. - 2014. - Т. 159 : Економічні науки. - С. 53-57.