A revisit to interest rates outside the organized money markets of underdeveloped countries

Abstract

In the November 1957 issue of Staff Papers, a study was performed on interest rates outside the organised money markets of underdeveloped countries. The present work updates the information contained in that study and re-examines its conclusions. The author looks at the size of unorganised money markets, sources of credit, demand for funds, non-institutional rates of interest, links between unorganised and organised money markets and causes of high interest rates. JEL: E43, E51

Keywords

• Interest rates
• money markets
• less developed countries
• credit