Ronald Mckinnon's contributions to economics

Research output: Contribution to journalArticlepeer-review


Ronald McKinnon contributed crucially to our knowledge of the key role of savings, investment and financial intermedication in economic growth. Financial repression by governemt spending on consumption and repressed interest rates leads to low savings which finances investment, thus slowing growth. This is Ron's message even today. He has castigated the U.S. monetary authorities for falling into a "policy trap" of repressing interest rates, presumably to foster investment and growth. In fact, Ron points out that zero rates deter savings and thus punish both investment and growth.

Original languageEnglish (US)
Article number1640024
JournalSingapore Economic Review
Issue number2
StatePublished - Jun 1 2016


  • financial repression
  • investment
  • Savings

ASJC Scopus subject areas

  • Economics and Econometrics

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