Interest Rate Determination in Lebanon / Tushar Poddar, Mangal Goswami, Juan Sole, Victor Echévarria Icaza.

Format:

Book

Government document

Author/Creator:

Poddar, Tushar.

Contributor:

Goswami, Mangal.

Icaza, Victor Echévarria.

Solé, Juan.

Series:

IMF Working Papers; Working Paper ; No. 2006/094

IMF Working Papers

Language:

English

Subjects (All):

Interest rates--Lebanon--Econometric models.

Interest rates.

Country risk--Lebanon--Econometric models.

Country risk.

Physical Description:

1 online resource (24 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

This paper seeks to understand how interest rates are formed in Lebanon, by focusing on the pass-through from benchmark rates, prevailing liquidity conditions, and the main characteristics of the Lebanese economy, notably its open capital account, fixed exchange rate, high government borrowing requirement, large public debt, and high degree of deposit dollarization. We find that international interest rates are an important element in the determination of interest rates in Lebanon. In particular, the pass-through of global benchmark rates to interest rates on sovereign bonds is about 70 percent. The less-than-complete pass-through could be attributed to a home-bias effect reflecting a relatively stable and dedicated investor base. The study also shows that interest rates in Lebanon are affected by liquidity conditions as well as perceived sovereign risk.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. THEORETICAL BACKGROUND""; ""III. EMPIRICAL STRATEGY""; ""IV. TRENDS IN INTEREST RATES""; ""V. RESULTS""; ""VI. DISCUSSION""; ""VII. CONCLUSIONS""; ""REFERENCES""

Notes:

"April 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613822093

9781462358892

1462358896

9781452758220

1452758220

9781282542143

1282542141

9781451908886

1451908881

OCLC:

698585722