The paper analyzes empirically the linkages between interest rates, the debt-equity ratio of firms, the overall cost of capital, saving, investment, and growth in the Korean economy during 1963-81. The interdependence between financing and real decisions is explicitly modeled. Estimates show...

The paper analyzes the macroeconomic consequences that flow from enterprises' financing their investment with a large share of debt in relation to equity. For developing countries characterized by segmented financial markets, controls on the banking system, and substantial reliance on debt,...

The paper discusses the interrelationships between payments system reform and monetary policy implementation in selected countries in Central and Eastern Europe. The reforms in the payments system are viewed as closely interrelated with the development of money and foreign exchange markets and...

The transition strategy from administratively set interest rates to market rates is discussed. Despite worldwide trends toward financial liberalization, few monetary authorities are prepared to accept as reasonable any interest rate level that is market determined. The paper suggests some...

Recently, policymakers have been discussing the best basket peg for a country seeking stability in a world of generalized floating. This paper argues that the real exchange rate is the important policy variable and that, although exchange rate data are available daily, price data are available...

A dynamic model of public investment, private investment, savings, and growth is developed and applied to India and Korea. The model highlights the impact of public investment on private investment and growth by incorporating the various channels of influence that public investment has on...

The paper highlights some of the key issues and gaps in the supervision of Islamic Banks, and in particular, addresses the supervisory implications of the role of investment account management. One of the key issues in Islamic banking is how to measure and manage the sharing of returns and risks...

The paper highlights some of the key issues and gaps in the supervision of Islamic Banks, and in particular, addresses the supervisory implications of the role of investment account management. One of the key issues in Islamic banking is how to measure and manage the sharing of returns and risks...

Efforts to promote regional economic cooperation and integration in South-East Asia and particularly in the Association of South-East Asian Nations (ASEAN) countries, have received greatly increased emphasis in official circles since the Asian crisis of 1997–98. South-East Asian financial...