IMF paper studies interest rate spreads in Pacific Island countries
Paper examines determinants of lending rates and interest rate spreads
The size of the economy is an important factor in determining interest rate spreads in Pacific Island countries, according to a working paper published by the International Monetary Fund on May 4, which finds the "economies of scale available in larger, higher-income countries reduce spreads".
In What drives interest rate spreads in Pacific Island countries? An empirical investigation, Fazurin Jamaludin, Vladimir Klyuev and Anuk Serechetapongse examine the determinants of lending rates and
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