Financial liberalisation and liquidity constraints in Myanmar and Nepal: Some empirical evidence


Habibullah, Muzafar Shah and Smith, Peter (2001) Financial liberalisation and liquidity constraints in Myanmar and Nepal: Some empirical evidence. Savings and Development, 2, 123-139.

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Description/Abstract

One important effect of financial liberalisation is to reduce liquidity constraints. The ability of households to borrow and adjust their financial portfolios has important implications for monetary aggregates and consequently for the conduct of monetary policy. To investigate whether financial liberalisation has reduced liquidity constraints in Myanmar and Nepal, we employ the Euler equation approach.

Our estimate of the fraction of liquidity constrained consumers is about 0.7 - 0.8. Further, our result suggests that financial liberalisation has resulted in the reduction of liquidity constraints in Nepal but not in Myanmar.

Item Type: Article
ISSNs: 0393-4551 (print)
Related URLs:
Subjects: H Social Sciences > HG Finance
Divisions : University Structure - Pre August 2011 > School of Social Sciences > Economics
ePrint ID: 35225
Accepted Date and Publication Date:
Status
2001Published
Date Deposited: 16 May 2006
Last Modified: 31 Mar 2016 12:03
URI: http://eprints.soton.ac.uk/id/eprint/35225

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