01719cas a2200241 a 4500 AALejournalIMF000660 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451952025 1018-5941 BD-DhAAL BD-DhAAL Catao, Luis. Intermediation Spreads in a Dual Currency Economy : Argentina in the 1990s / Luis Catao. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The currency board arrangement and widespread dollarization of the Argentine economy since 1991 have laid the basis for domestic interest rates to converge to international levels. Although such a convergence has been observed for interest rates on bank deposits, interest rates on bank lending remain well above industrial country levels. This paper examines the causes of high intermediation spreads in Argentina using a dual currency model of the banking industry, which incorporates key features of credit markets in that country. Empirical results allow inferences to be drawn on the effects of macroeconomic and financial policies on bank lending and interest rates. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/090 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/090/001.1998.issue-090-en.xml IMF e-Library