Interest rates in emerging economies: exchange rate regime and public indebtedness in Lebanon
Joseph Bitar  1@  , Florence Huart * , Piotr Stanek * @
1 : LEM (CNRS), University of Lille 1
University of Lille 1
* : Auteur correspondant

This study aims at analysing interest rate determinants in a small open
dollarized economy under a xed exchange rate regime. Using an autoregressive
distributed lags model (ARDL) we are able to successfully test the theoretical
predictions of a model adapted from Edwards and Khan (1984) for Lebanon.
Specically, we demonstrate that international interest rate pass-through is not
complete and that is necessary to take into account international and domestic
risk factors as well as measures of money supply.

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