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dc.creatorLarson, Donald W.en_US
dc.creatorThompson, Stanley R.en_US
dc.description.abstractThe present paper discusses the main features of repressed financial markets and the various subtle ways that repressed financial markets cause major distortions of capital flows among countries. Some of the key features of repressed financial markets include large fiscal deficits, high inflation, subsidized and directed credit lines, low savings rates, high bank reserve requirements, high transaction costs, and government controls of interest rates and exchange rates. Repressed financial markets may increase risk for agribusinesses by adversely affecting ownership opportunities and the ability to invest locally. The added risks also include exchange rate risk and interest rate risk. Agribusinesses may want to increase use of futures markets, contracting and integration to manage the increased risk. As the world moves to more open markets, countries with repression in financial markets may encounter difficulty attracting foreign investment and mobilizing local resources for economic growth. Reform of financial markets will likely be necessary to succeed in the new world order.en_US
dc.format.extentPages: 16en_US
dc.publisherOhio State University. Department of Agricultural, Environmental, and Development Economicsen_US
dc.relation.ispartofseriesOhio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2316en_US
dc.rightsThis item may be protected by copyright, and is made available here for research and educational purposes. The user is responsible for making a final determination of copyright status. If copyright protection applies, permission must be obtained from the copyright holder to reuse, publish, or reproduce the object beyond the bounds of Fair Use or other exemptions to the law.en_US
dc.titleCapital Flow Distortions Caused by Repressed Financial Marketsen_US
dc.type.genreWorking Paperen_US

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