Financial Repression: External Aspect

Abstract

Within a framework of nonconventional monetary policy both developed and emerging nations resorted to measures of financial repression between 2009 and 2014 to alleviate public debt problem and generate additional revenue for the government. However, recent studies dedicated to the phenomenon ambiguously assess the role of external financial repression in achieving more efficient results of internal regulation. The article makes an attempt to give a quantitative assessment of the impact of external financial repression on economic growth by empirically analyzing the cases of developing and developed countries. The relevance of the article could be attributed to the construction of external Financial Repression Index based on a new IMF dataset.