Budget Deficit and Interest Rate in SAARC Countries : A Time Series Approach

Kanchan Datta and Chandan Kumar Mukhopadhyay

Published by Abhijeet Publications, 2011

About this Item

Contents Preface 1 Introduction 2 Survey of literature 3 Methodology 4 Budget deficit and interest rate in the economy of Srilanka 5 Budget deficit and interest rate in the economy of Nepal 6 Budget deficit and interest rate in India 7 Budget deficit and interest rate in the economy of Maldives 8 Budget deficit and interest rate in the economy of Bhutan 9 Budget deficit and interest rate in the economy of Pakistan  10 Summary and conclusion References Index The research support from the UGC has gone a long way to generate massive research activities in the department Teachers and Research scholars have devoted themselves in active research works on "Regional Studies" This South Asian Economy constitutes the main thrust of such studies This book is the outcome of such kind of research effort We express our sincere gratitude to Professor A Basumajumdar Honable Vice Chancellor North Bengal University for his generous help and unfailing support for over research endeavors A common belief held by some economists that persistent budget deficits leads to higher interest rates thus hindering capital formation However economists disagree whether large budget deficits affect the real economy The Keynesian open economy hypothesis states large budget deficits may increase interest rates and appreciate the domestic currency and other currencies crowding out investment spending and net exports Alternatively proponents of the Ricardian equivalence proposition claim that deficits have no real effects since households adjust their savings to offset anticipated future tax liabilities implicit in deficits for a given path of government spending Therefore interest rates are unaltered and budget deficits have no adverse macroeconomic effects Under this circumstances it is quite pertinent for a researcher to investigate the presence of such kind of relationship among SAARC countries 151 pp.

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Bibliographic Details

• Title: Budget Deficit and Interest Rate in SAARC Countries : A Time Series Approach
• Publisher: Abhijeet Publications
• Publication Date: 2011