This paper seeks to determine nominal interest rates in five small developing countries - The Bahamas, Barbados, Guyana, Jamaica, and Trinidad and Tobago. The traditional Fisher equation augmented with the US nominal interest rate is employed. Results indicate the existence of a long-run relationship for The Bahamas, Jamaica (when the country’s exchange rate is floating), and Trinidad and Tobago. The Bahamian nominal interest rate moves one-for-one with the US interest rate, while for the others, the movement is greater than one-for-one. Fisher’s relation does not appear to be a suitable framework for determination of nominal interest rates in Barbados and Guyana.

(2008). Interest rate determination in developing countries [journal article - articolo]. In SAVINGS AND DEVELOPMENT. Retrieved from http://hdl.handle.net/10446/27403

Interest rate determination in developing countries

2008-01-01

Abstract

This paper seeks to determine nominal interest rates in five small developing countries - The Bahamas, Barbados, Guyana, Jamaica, and Trinidad and Tobago. The traditional Fisher equation augmented with the US nominal interest rate is employed. Results indicate the existence of a long-run relationship for The Bahamas, Jamaica (when the country’s exchange rate is floating), and Trinidad and Tobago. The Bahamian nominal interest rate moves one-for-one with the US interest rate, while for the others, the movement is greater than one-for-one. Fisher’s relation does not appear to be a suitable framework for determination of nominal interest rates in Barbados and Guyana.
articolo
2008
Cet article cherche à déterminer des taux d’intérêts nominal dans cinq petits pays en développement : Bahamas, Barbade, Guyane, Jamaïque, et Trinité-et-Tobago. L’équation traditionnelle de Fisher augmentée avec le taux d’intérêt nominal des Etats Unis est utilisée. Les résultats indiquent l’existence d’un rapport de longue durée pour les Bahamas, la Jamaïque (quand le pays est sous un régime flottant d’échange), et les Trinité-et-Tobago. Le taux d’intérêt nominal du Bahama suit le même pas de variation du taux d’intérêt des Etats Unis tandis que pour les autres le mouvement est plus important. La relation de Fisher ne semble pas être un cadre approprié pour la détermination des taux d’intérêts nominal en Barbade et en Guyane.
Lorde, Troy; Francis, Brian; Waithe, Kimberly; Taylor, TIMOTHY G.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10446/27403
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