Financial liberalisation and liquidity constraints in Myanmar and Nepal: Some empirical evidence
Financial liberalisation and liquidity constraints in Myanmar and Nepal: Some empirical evidence
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.
123-139
Habibullah, Muzafar Shah
1a2e0b22-25d8-4837-af10-b98b03a59ac1
Smith, Peter
7085f0ad-c538-4208-80f4-e9b3fd36b365
2001
Habibullah, Muzafar Shah
1a2e0b22-25d8-4837-af10-b98b03a59ac1
Smith, Peter
7085f0ad-c538-4208-80f4-e9b3fd36b365
Habibullah, Muzafar Shah and Smith, Peter
(2001)
Financial liberalisation and liquidity constraints in Myanmar and Nepal: Some empirical evidence.
Savings and Development, 2, .
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.
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Published date: 2001
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Local EPrints ID: 35225
URI: http://eprints.soton.ac.uk/id/eprint/35225
ISSN: 0393-4551
PURE UUID: 6fe2223a-f490-40e1-bb9c-49b2987fb4a6
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Date deposited: 16 May 2006
Last modified: 15 Mar 2024 07:51
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Author:
Muzafar Shah Habibullah
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