## Relative Price Stability, Creditor Rights, and Financial Deepening

_IMF Working Papers, June 1, 2007_

## Source details

**Canonical URL:** [Relative Price Stability, Creditor Rights, and Financial Deepening](https://www.imf.org/en/publications/wp/issues/2016/12/31/relative-price-stability-creditor-rights-and-financial-deepening-20991)

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## Bibliographic details
- Authors: Pablo F Druck, Alexander Plekhanov, Mario Dehesa
- Published: June 1, 2007
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451867039.001

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### Summary and main findings
- The paper provides a theoretical and cross-country empirical analysis of the determinants of financial deepening.
- Higher credit-to-GDP ratios are associated with stronger creditor rights and lower inflation.
- The marginal effect of improvements in creditor rights protection is declining as the rate of inflation increases.

### Policy implications
- In a high inflation environment, controlling inflation and reducing macroeconomic volatility should be given priority.
- Once inflation control and macroeconomic stability are achieved, focus should shift to:
  - Creditor rights protection.
  - Credit information management.

### Subjects and keywords
- Subjects: Banking, Credit, Domestic credit, Inflation, Self-employment
- Keywords: interest rate, WP

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/relative-price-stability-creditor-rights-and-financial-deepening-20991_