International Interest Rate Convergence:A Survey of the Issues and Evidence

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Quarterly Review

International Interest Rate Convergence:
A Survey of the Issues and Evidence

Winter 1993-94Volume 18, Number 4

Author: Charles A. Pigott

World financial markets have become substantially integrated over the last two decades. Contrary to widespread expectations, however, this integration has not led to any greater convergence of interest rates across countries. This article examines why convergence has not occurred and more generally what financial integration does—and does not—mean for international interest rate relations.

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14 pages / 1,464 kb

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