Tài liệu The Mckinnon-Shaw Hypothesis: Thirty Years on: A Review of Recent Developments in Financial Liberali

ABSTRACT


The Mckinnon-Shaw Hypothesis: Thirty Years on: A Review of Recent Developments in Financial Liberalization Theory


by


Dr Firdu Gemech and Professor John Struthers
University of Paisley


The Mckinnon-Shaw Hypothesis, in its’ various forms, is now thirty years old. Over that
period literally hundreds of empirical studi es have been completed examining the
hypothesis in many different contexts. Initially, the hypothesis focused on the effects of
so-called “Financial Repression” (low or negative real interest rates) on savings and
investment levels in developing countries. In more recent times, researchers have
extended the debate to consider other effects of financial repression on: economic
growth; financial crises and poverty (for example the effects of overvalued exchange
rates). Currently, significant research is being conducted on the potentially destabilizing
effects of financial liberalization (the converse of financial repression) on global
financial markets.


This paper attempts to survey the literature on the Mckinnon-Shaw Hypothesis and tries
to draw out some of the recurrent themes of this literature. The paper also highlights the
continuing relevance of the original hypothesis to on-going debates concerned with the
effects of financial liberalization.


CONTACT


Dr Firdu Gemech 00 44 141 848 3393;<a class="__cf_email__" href="http://www.cloudflare.com/email-protection" data-cfemail="c8aea1baacbde6afada5adaba088b8a9a1bba4adb1e6a9abe6bda3">[email protected]<script type="text/javascript">
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Professor John Struthers 00 44 141 848 3364; <a class="__cf_email__" href="http://www.cloudflare.com/email-protection" data-cfemail="7b1114131555080f090e0f131e09083b0b1a1208171e02551a18550e10">[email protected]<script type="text/javascript">
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Division of Economics and Enterprise
Paisley Business School
University of Paisley
Paisley
PA1 2 BE
Scotland


* Paper presented at Development Studies Association (DSA) Annual Conference on
“Globalisation and Development”, Glasgow, Scotland, September 2003


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