The paper analyses the role of the lending-deposit interest rate spread in the dynamics of the current account in developing countries. For that purpose we extend the standard perfect-foresight intertemporal model of the current account for the existence of the interest rate spread and simulate the convergence path of developing economies. This model helps explain why in many cases it is optima...

This paper examines the monetary transmission mechanism in the countries of the Central African Economic and Monetary Community (CAEMC). Specifically, we focus on the very first step of this mechanism namely the interest rate pass-through from short-term interest rates towards long-term rates. Using an autoregressive distributed lag (ADRL) model, we show that there is evidence of a very low and...

Retail certificates of deposit provide financial institutions with funds and depositors with income. Because interest rates and terms on deposits vary, understanding the reasons for the variation should help participants in this market make better decisions. This study explores interest rates and terms on deposit offerings from banks and thrifts while controlling for risk, service, and demograp...

The Canadian system for financing housing differs in a number of important respects from the U.S. system. Of greatest interest for this study is the absence of interest rate ceilings on deposits or mortgages and the fact that nearly all single-family mortgages are of a "roll-over" variety with interest rates fixed for only a fraction of the total amortization period, These two differences, as w...