Chong, Beng Soon - In: Journal of Banking & Finance 34 (2010) 6, pp. 1299-1307
deregulation increases the efficacy of monetary policy by improving the correlation between retail bank deposit rates and market …This paper examines the effects of interest rate regulation, and subsequent deregulation, on the efficacy of monetary … policy and rigidity of retail bank deposit rates in Hong Kong. Using an error-correction model, we find that interest rate …