Since 1988 Peru has plunged into a deep economic crisis which has already caused severe social strife and threatens to uproot the young democratic system. The present government seems to be unable to arrest the precipitous decline of per capita income of the Peruvian population. Therefore, the...

The principle aims to be achieved by financial liberalization in financially repressed developing countries are to increase the volume of investments and to improve their allocative efficiency. The theoretical and empirical literature stresses the importance of raising real interest rates in...

Most Latin American countries relied to a large extent on foreign funds to finance their economic development in the seventies and eighties. However, important differences existed with respect to the structure of their capital inflows, the regulations affecting different types of inflows and...

This study reviews the process of financial deepening in Thailand over the period 1970-1985. The success in deposit mobilization is attributed to the branch expansion of commercial banks and attractive interest rates. On the lending side inefficient allocation of funds and lack of long term...

During the 1970s and early 1980s Mexico, like many other Latin American countries, relied to a large extent on foreign capital in financing public and private expenditures. While the annual inflow of debt was always larger than that of foreign direct investment (fdi), the relative importance of...

The liberalization of interest rates has become more and more an integrated part of the policy advice given to developing countries in order to stimulate domestic savings and to improve the allocative efficiency of investments . One of the most critical assumptions behind this policy approach...

Stagnating development aid and continued reluctance on the part of western commercial banks to grant new loans to problem debtor countries have led many developing countries to pay greater attention to the mobilisation of their own resources. This article outlines a strategy for increasing the...

The domestic capital markets of developing countries are typically subject to serious inefficiencies. This article shows how these inefficiencies can be eliminated without necessarily provoking an adjustment crisis and indicates the measures on which emphasis must be placed in the context of...