Working Paper No. 744 December 20, 2012

Interest Rate Determination in India

Empirical Evidence on Fiscal Deficit – Interest Rate Linkages and Financial Crowding Out

by Lekha S. Chakraborty

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Bard College
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The Levy Economics Institute of Bard College, founded in 1986 through the generous support of Bard College trustee Leon Levy, is a nonprofit, nonpartisan, public policy research organization. The Levy Institute is independent of any political or other affiliation, and encourages diversity of opinion in the examination of economic policy issues while striving to transform ideological arguments into informed debate.