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Financial Barriers in the Pacific Basin: 1982-1992

Financial Barriers in the Pacific Basin: 1982-1992

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Interest rate links strengthened among some Pacific Rim countries over the period 1982-1992, even though substantial country barriers remain. The covered interest differential narrowed for Australia and New Zealand, as their programs of financial liberalization admitted them to the club whose members already included Canada, Hong Kong, Japan and Singapore. The covered interest differential actually increased slightly over certain subperiods in Japan and Canada, but the economic magnitudes were quite small, and are probably due to other factors besides the presence of capital barriers.

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