Findings from University of Alabama in Investment Reported (Capital Controls, Banking Competition, and Monetary Policy): Investment

2024 MAY 28 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on Investment. According to news reporting originating from Tuscaloosa, Alabama, by NewsRx correspondents, research stated, “How do capital controls and banking concentration affect economic development? This paper develops a general equilibrium model to study these important issues.”

Our news editors obtained a quote from the research from the University of Alabama, “To do so, we construct a framework with heterogeneous agents and imperfectly competitive financial intermediaries who help depositors manage liquidity risk. Importantly, higher levels of concentration raise the cost of domestic borrowing which increase the reliance on international capital markets.”

According to the news editors, the research concluded: “Finally, once the rate of money growth is sufficiently high, capital controls bind and the effects of monetary policy on capital formation are more pronounced.”

This research has been peer-reviewed.

For more information on this research see: Capital Controls, Banking Competition, and Monetary Policy. Economic Inquiry, 2024. Economic Inquiry can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Economic Inquiry - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1465-7295)

The news editors report that additional information may be obtained by contacting Robert R. Reed, University of Alabama, Culverhouse College of Business, Dept Econ Finance & Legal Studies, Tuscaloosa, AL 35487, United States. Additional authors for this research include Edgar A. Ghossoub and Andre Harrison.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/ecin.13205. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.