Do high interest rates stem capital outflows?

Authors
Pakko, MR
Citation
Mr. Pakko, Do high interest rates stem capital outflows?, ECON LETT, 67(2), 2000, pp. 187-192
Citations number
5
Categorie Soggetti
Economics
Journal title
ECONOMICS LETTERS
ISSN journal
01651765 → ACNP
Volume
67
Issue
2
Year of publication
2000
Pages
187 - 192
Database
ISI
SICI code
0165-1765(200005)67:2<187:DHIRSC>2.0.ZU;2-1
Abstract
Conventional wisdom posits that high interest rates stem capital flight. Bu t if higher interest rates increase the probability of debt default, they m ight have anti-orthodox effects. This note develops a framework for evaluat ing conditions under which this might occur. (C) 2000 Elsevier Science S.A. All rights reserved. JEL classification: F32; F3.