Interest Rate and Borrowing Defense Against Speculative Attack Allan Drazen University of ...

55 Pages·1999·0.23 MB·English

by  Gail Knowlan

Interest Rate and Borrowing Defense Against Speculative Attack
nezar DnallA
RE BdN n,amelasur e fJyotisrevi nwUerb e,Hdnalyr a fMyotisrevinU
October 1999
ABSTRACT:,nonemone hw t peaoe nnrsaet aergnahc xdeex insfokcat teavitaluce phsguo hT
seisnef eedt atrseret nhig ihahgu o. heTtelpmoc n simie httsnia geasnef e fdgonidnatsred nruuo
r oefrutaret iel h ntkirowema rlfaren e ogdn nganiled olmamr o oftnsom l saeire h,tdetnu onmetfo
.gniwor rhso cab,usseigeta retvsitanre tgtolnitairap m ro docenfsane fee tdtasrere tgnniiyduts
etelpmoc n sieire hnte hgwnilang i nssoisahp mleaice phst idwetnese r spkirowema rhafcuS
.et aergnahc xdeex ief hdtnef e odttnemtimm o rcyotili bsa’kn albartn eec httuo bnaoitamrofni
f otso ceh tsesia rt if inev elia fya mesnefe deta rtseretn ihgi hayh wn os isuco fyramir pehT
set atrseret nhig itha hsttinemug ry ae.e knhoTitaluce pssret eydliraropm eetcn ed hnnaoitaluceps
e bneh tlli wyeh tecni s,yleki ls inoitaulave dasknih ttnemnrevo geh ttah tlangi sas aevre syam
lacs ie f h. ftsIeilp mginiworr oebgr atla hntoitis oypcnerr uncgier otfro hes hetk a otgtnilliwnu
fyotilibabo rep hetsaerc nyi asmet atrseret nhig i,hlatnemadn utfnatrop m ni sanioitisop
. et thiuTo byatniatrec n sueire h ft tieisaerc etd u,bnwo n sknioitis olpacs ief h ftnioitaulaved
eh tf ossenevitceff eeh tn ostluse rlaciripm edexi meh tgnidnatsredn un ilufes ue bdluoh ssisylana
.ecitc aenrsipne fee tdtasreretni
, .,AhPgrubst t,iyPci lcoiPl bsnueoPi reecSneref nroeCtsehcoR-eigen r ea rhCdotefrap erreppaP
lufpl eyhr erv ohfcirb unHafe tdS nyaelo oeDk ikMna h o tht.s 9iI9w 9,102- 9r1ebmevoN
.ecnatsis shacraes eerl byar erv ohfcirb unHafe tdS nsanoissucsid
1. Introduction
rebm ue nht tu,bnonemone hw t peaoe nnrsaet aergnahc xdeex insfokcat teavitalucepS
suorem u.Ntnerr uecti uequs se ihetd aemv ashra ew yetfs ae l hnstikcat tfyaoticor edfna
fsoess oelviss a omgtnida e,lseicnerr urcie h ntsokcat teavitaluce pdsessent iewv asheirtnuoc
s'tnemnrev oeg h nteicnedifn oscrotsev n nieispall olcautne v neda nsaevres eergnahc xnegierof
eh tdn astekra mlatipa clanoitanretn in ignidar tylia df oemulo vesnemm ieh T.seitilibai llaicnanif
fyocr eem h ttear omme esseirtnu oeck aymlsuoenatnats ntisom lsam uesviss agmniv o fmeosae
r u,osra eyyn arme vsoesi rycn agmnissent irwet fnae v, et. eeYrof erbe vnea hstrotaluceps
d ndaetre v eanb ascesi ryccnerr uwc o fhsonoitse uyq ee.k heTtelpm omco rrf a sfginidnatsrednu
.e cr aescrrsaew st,nugabniss eert p iekurcqaa tetvaital utc seanpis adgna e wfooethd
ycnerr u nac. asCisi r naceit aergnahc xdeex igafnidnef etduo bcais aebm orsedisnoC
yebsnef edadl u? oyWcil oypraten oemtairporp p yadbednef eydllufssecc u eskbcat traednu
,espall oyccnerr uec hdtetre veav ashlev ehlg iyhlemert x oestet atrseret nginisi a srhac usserusaem
?esro wsisir celbativen in aeda myln oeva ht idluo wr o,sisir claicnani feh tyllarene gero mdna
?cin a fpeo nyolpm i rs”ossenhguo t f“loang idasn esset atrseret nhig iyhlemert x feyocil osapeoD
oeatsnops e noryitcnerr uncgier ofgfoniworr oebviss anemigag ndeaets nyirtn u doalcuohS
? kcat teavitaluceps
ostrews nganicnivn okcc a eltw u,bsrekamycil ogpnic asfnoitse uyq eek rease h ftlolA
. meht nsiet atrseret nhig i fhyocacif fee httuo bsausnesn olca e or sneire h,ted ilsacirip mee hntO
esnef eedt atrseret nndiae seuv asheirtnu oe.cm kocSat teavitaluce ptssnia gganidnefed
ycil ohapc ussemite m. osSeruli a,fralucatce pnset f,osuorem unne eebv aehre htt u,byllufsseccus
soet tmarret-tr oghnsis i,asre m ri.etd hetvOil-tr osshsisec c eu ths,utlbufssec csursaeppa
gnirret e ndticef feeltt ielv a ohdteme ess aeht aergnahc xee hdtnef e odstlev ellacimonortsa
cirtemono cleamr oefr ohmt iewus ssii hdtesserd dsa a)h899 1y(aa r,Kyltne c. enRoitaluceps
r aoynrasse c reaenhti ee nrsaet atrseret nhig itha hsteug rehahci hfswois ae b hn,toseuqinhcet
e httuo blaacitpe kesti umq iehk asmtlus e sr. inHoitaulav egadnitneve rrp onfoitidn otcneiciffus
. esnef eedt atrseret nhig ifaehoulav
gnikir tsa,sievo bdaesi asrnoitse ueq h fteocnatrop mei hntev i,ggnisirpr uesr onmevE
ddneatn unoem t efsroeasne fee tdtasrere thn gi.us oehsT iyrccner renurocutare t eienhllitoh
1
otnsom l saeire h,tF MeI h ytdbebircse rnpet fyocil okpoobtx e satsiet atrseret nhig ighniniatniam
ylla e sreire h,trevoe r. oeMrutaret isli h nteisnef eedt atrseret n fiyodu tcsitamets y rsgoniledom
.seigeta retvsitanre tgtolnitairap m ro docenfsane fee tdtasrere tgnniiyd u rtkosrfowem aornf
citsemo dhgi h,ytilibo mlatipa ctcefrepm ihti wtah tsetacidn iledo mgnimelF-llednu Mcisa behT
.ycne rcriutc s neeemhhottdg n ledarntt aisnpg a is ceeettrr tc saolaaae forrro otetytttcannierruc
n e.v kicGat teavitaluce ptssnia gdanef eosdteigetar ttsuo beacnadi ulga eerltt islev it,girevewoH
nsousnesn olcacirip m oseenire htta hgtnisirpr ut soynlbabo r stp,iikr olwaciteroe hfktoc aelht
. esnef eedt atrseret nfsiosenevitcef feeht
gniwor r doen btatasrere tlfneo idloamr ee ndaei gv rosoeri tpps a iepfhsotop reuhpT
d nsarotaluce phst oynbboitazimit psoesser tksrowem a .re kfhcTat teavitaluce ptssnia geasnefed
. esnef e fdsots olcacs ief h ntsoisahp mleaice phst i,wnoitamrof nciirtemmy sraed nsukn albartnec
,seasn et fn a eutrordooetomnht enfhoowisi c eedhdntatsre drneu t mtseoieittabami telhuT
lare n geangitnese ronptoitid dn,a is ti.a sheTsnef eedt atrseret nfeioruli arsfosecc ue s hsltalew
suougib mea hgtnidnatsred n nuliufe s eudbluo hlsed oem h,telbacilp p eadbluo htsa hktrowemarf
lautpecn oec hettanimul lpil e oh striep aep h ftmo iraeht r. usAftlus elracirip mee h fteorutan
led oymlpm its osnedulc n ti,ihc u ss;aesnef egdniworr o rbeot atrseret n ni nadievlov nsieussi
elbissec caae re ahgtnik afemop oe h hn,tinoissucs iddnuorgkc aebvisnet xoes lt au,bnoitcurtsnoc
.e cne i droue tadaiw
d nsaet atrseret nginisi anreewt enboital ee rhtta hsrtiep ae p hfetogass enmi aAm
.set asrtseret nhig i nhtinereh nliang ies h fteosuac exbelpm o scsierusse repvitaluce pgsninepmad
taa hrteht ileang iys asmet atrseret nhig i,hev ashrotaluce ptsa hntoitamrof nei h ntgonidnepeD
o enebrofere hltl iewr e. heTt aergnahc xee hdtnef e odetl bear o rmeol bsas e sltinemnrevog
. skcat teavitaluce pfesoruli arsfosecc ue shd tnsaet atrseret nginisi anreewt enboital eerlpmis
nsieus sciis aebm orsedisn o ec,wnoitc etsx ee n h. ntsIwoll o sf sariep aep h ftnoa lephT
cis aeb hdt nsaserd ddaluo hlsed osameus stia hhwt o,besnef edd nkacat teavitaluce pgsniledom
e enherotra eshrte p wa eepwhfeti v.oes srkel rWaeoswne fee tdtasrere t wnnnfoaioohitiutni
tseret n nieocnedi vleacirip mee h fteom owseiv eyrlfei r eb ,wn3oitc e. nseIsnef eedt atrseretni
osenire htta hettacid noyitlpm it su,bevisneherpm o eoctbtna et m osnnioitc e.e sehsTnef eedtar
,n4oitc e. nseIsnef eddeli a rfloufssecc uds nsaet atrseret nhig inheewt enboital elracirip meelpmis
2
e,wsi h ftsois a eb .h netOsnef edd nkacat teavitaluce p fssocinahc eem h ftsoliat etdnese repw
gnisser t,ns5oitc enesisnef egdniworr od bneat atrseret nginiydu tr sokfrowema rcfi s taanbeserp
cis aeb httneserp eyr akmrowema ref hwt oshwo hs6snoit c. enSoitamrof nciirtemmy s fasoeussi
.secnatsmucr ilcanret x nesiegna h fcsoep yrteh t fotocef fee h stlal e sw,asisyla nnaamgurK
li ay faemsnef eedt atrseret nnwi aoshwo h,srep ae p hfttora elhaciteroe he t hshtici h,nw7oitceS
ht iewrutc ispi hetcnal ae,nbw8oi t.c denn sIesset atrseret nhig itha hltang iessrev de ahoettud
evitiso padne sseta rtseretn ihgi hhcih wn inoitamrofn icirtemmys af onoitacificep sevitanretl ana
noitamrofn itcefrepm ihti wledo mdeificep syllufera casdee nen otah ts iegasse mcisa be h .Tlangis
lhe cdta uoa,sm hd,tnsakca tetvaitalu c senep otstasrere t h nsgfitioche fedfhnetatsre dontu
fsoep yttnereff i fdtocep sganilang ies hetc nxoelpm oecti u eqyb anmoital eer htta hstetacidni
.r e pesaheptdu lnc on.9iott cncueo Sco ctna ne eikssaintefed
2. Basic Issues and Approaches
nyicnetsisnoc n ni,aespall oect aergnahc x neroep alpanim e)s979 1s(’namgu rnKI
.et aergnahc xdeex i faftonemnodna bea h otstda esllatnemadnuf 1yraten odm nlaacs itfner r uC
r. osFet adrex ihft itwnetsisnoc neirofere h stdi n,asevres e nrsis oyldae tsasecud nyicilop
f oeta re h .Tyeno mgnitnir py bt ignicnani fs idn a,ticife dagninnu rs itnemnrevo geh t,elpmaxe
,n utrro hes h nt;in ugrn oel h nteit aergnahc xdeex ief hhtt itwnetsisnoc n sinioisnap xyeratenom
ngier orf o tfeignahc xde nyacnerr uccitsem o fdloev erlehg ieh hdtl o ohttn atw o onsdlaudividni
mumin itam ishevres enre hdwenodna b eatbs uemt agr e ep) h.Tstes sdaetanimon eydcnerruc
tt aosnespall og cee ph,trev e.w sotHnapicitr atpekr al m loeatgdelwo nnkomm oshcici h,wlevel
kcat teavitaluce p nasti u,bsevres e freonilc eyddae tes hgtnitalopart xyelpm i ysdbeilp meit aedht
nhac usseilp mrioivah erbotsev nliamit phoci h tweat atdsr ief hytlem a,net ardeilr aeem otsa
. deecc ulsl ikwcatta
pe trsoj asam agw eeplbaniatsus n nu fatonemnodna bealbative nei h ftloed osm’namgurK
ssiesi rycc1nerr u fcloed olmacissa lec h,tt udoetni oepv ashreh tdo n)a699 1n(amgu r sKA
desa bno e hrtepa py t,bnn)oa8 s l7dorda9nheeS1 awdw(tnoaeh h Hsttephmte totta gepeht
t akhcta tetvaitalu ch e tapeisswpal ldolc ukocw odtlseh-tnemnr edn veoao sgda lbefocogirp
wipes out that stock.
3
.erutaret ielg r daaelnwa ptds in,aespall osceicnerr uw coghnidnatsred nnui 2 w e ei,hvrte ve woH
kcatt aevitalucep scisa be h .Tsnoisnemi dlareve sn icitsilaern us istneser pt ignikamycilo pfo
e h. ntsIrekamycil ogpnizimit pnoa hrteht aerviss aspemus ssarep aepse h ntdieredisn olcedom
tnetsisnoc nyillaut utmnerr uhct iswkci ttsnemnrev oeg h,telpma xre o,fled onmamgu rlKanigiro
t .Idehcae rs ileve lmumini mlacitir ceh tneh wylevixelfe reta rdexi feh tsnodnab adn aseicilop
ycil osp ttisuj d tasie ord o,nycil oept aergnahc xtenerr uec hgtnidnef e ndyilevisserg gsat craehtien
.stnempoleve dlacitilo pdn acimonoc elanretx ef othgi lni 3egnahc xdeex ief hgtninodna b,atc a nfI
ssievres ew ro,lyllaciter o”e .heTn idl e gran“itt ishevres eodrtnopserr oyclpm it sosne oedtar
sevres ehrguo hnte vdeenodna bena bag cee p hs,taespal l ro aocnfoitidn oycrasse c reaenhtien
e h,tyllaciri p. mdEeworr o ebnb ascevres e sr,anoitidn otcneiciff ut assiri o,netauqe deara
,elbair arveggi rrteh teom or,sosevres eerrof elbl eswruc cnoet feot aergnahc xdee x feiaosfpalloc
.leve llacitir castih
nnooisic ee dhtta hsstirekamycil ofrpooivah ee b hfntooitaziretcara hectaruc cear oAm
gnitaroir e.t seeDvitcej bgonitcilfn ogcnicnal asbtcelf enret feoulav eotd t orrnoehtehw
nek astyaw lt aoseniulav eondtoisic ee dht tu,byro te shfttor atpnatrop mne iarsalatnemadnuf
nev isgevitcej broeh t foeocnatrop mei h fateosuac etb u,belbadiova nyullaret i sl tieisuaceb
f oytilibisaefn ilacinhce teh tmor ftluse rya mnoitaulave d,ecn e .Hstnempoleve dlanretxe
e h ytnbe egsni e tb,inoisic eldacitil otapneserp eyr a rm,oet aergnahc xdeex ief hgtniniatniam
d n oagsni o fdsots oec h fttohg i nlyitir adpex ief hntiatni a omltamit proegn o ol sntanemnrevog
.s evitce jrbeo heftcoonatro pemhit
frooivah egbnizimit peo hgtniled osmeriuq eerrofere hstesi ryccnerr ugcnidnatsrednU
.ylticilp xdeeled oem rdaethgi eew ryae hwt odh nsaevitcej bgonitcilfn osc thici h nw,itnemnrevog
ndaedivo repcn e2dh nlaed onmamgu rcKis aeb hdtezilamr o)f489 1r(ebr adG ndaoo lF
fsoled onmoitareneg-tsr ifyforam m tuansese r)p399 1a(l od Snnarubk c.a elcBnav dtanatropmi
tnetsisnoc nyillaut u fmsonoitacilp mei hytdu t)s88 9,1789 1n(ampl edH nnaez a. reDp ystiht
gnitt erleh tsoegna hyccil otpa h nt,iyllaren eegr osmeicil oept aergnahc xde n,alacs i,fyratenom
. ycnetsisnoc ne ihoettsnops endrieredisn oe crtaao left aergnahc xeeht
3 osenire ht tu,bdetsuj den abasceicil orpeh t,osrep anpampl ed Hnnaeza re DhntI
dnalreht udS nnaa k. zeOgna h ocsteicil ohpci hswenimret ehdci hnwoitazimit ptonemnrevog
.sisi ryccnerr udacio v oastegna hyccil o fploed ogmnizimit p notanese r)p5991(
4
ycnerr ufscoled oo”mtled osMisi rwCe Nm“r ee thdteilp peav ashreh td on)a699 1n(amgurK
e hetziretcara hhcci hdw nnaoitazimit ptonemnrev o ogetl olrartn esacev ihgci hswesirc
nsit unpamgu r. sKsAevitcej bgonitcilfn onceewt egbnisoo h fcsomr e ntnioisic endoitaulaved
msinahc eemlpm irasegn o ol -nt-nemnrev o Ag:“)0 5,3 p.(led osMisi rwC eeN hgtniziretcarahc
ts u -mn-oitcn usfs oealzimin i omgtniy rttne g naraeht atr u,bled olmacissa lec h nttia hetkil
si h ftsoelpm a” x.Eytir aept aergnahc xdeeifice pyslsuonego x nedanef e odtt o rnroehte hewdiced
dnna ak,z)O59 9n1o(s s,a)M49 9n1o(s sdnaneMaz a,r)D49 9d1l(eft sebdOul chnciaorppa
.)79 9e1n(n a dednJiaas n de,nB)a69 9d1l(eft s,b)O59 9d1n(alrehtuS 4
e h st)isnoitpec xeem ohsti wl(ed onmoitareneg-tsr icfis aeb hhtt imwelbo rdpnoc eAs
w e en .h netIspall olcl igw eep hnte h,wgnikae pysllaren e,gwo nskrotaluce ptsa hntoitpmussa
,sevitcejb ognitcilfno cff ognidar tssert shcih wsledo msisirc asymmetric information saya lnpet fo
stinemnrev oeg hytlgnor tws o nhsodnep eddeniatni a emlbl igw etp o rnroeht e. heWl oyrek
l l. ietwgIdelwo nnkomm ot c ostninemtimm ofecoerg esdi ht tu,bet adrex ie f hodttettimmoc
s tyilworr atns ogmnina e,mycnerr uec hdtnef e odyttili bsa’tnemnrev oeg h ntdonep eodsla
oe.osnt eohiTtau ttiesg d suytblida oer r bdo,nmsaevre sweorr ryoottbil i dbnnaoaiti seovpreser
dluo hrsoivah elbamit pso’rotaluce p fsloed ocmitsil a. esArrotaluce p ysnbwo nykll u eftb oynam
e httuo bnaoitamrof nticefrep m oittcejb umselbo rnpoitcart xleang icsiman ygadnivl omse hetvah
noitaulav e fdsonoitatcep xleanoi t. asRlatnemadn u ffnooitulo vee hdt nsaevitcej bso’tnemnrevog
tuo bsafeil edb nsaeicil o fpyorots ieh h ntdoes agbnitad pnuaisey a yBdbemr o efnbe hdtluow
.ec ayf atmnemnrev oeg hstkcohs 5
4 s itnemnrevo ggnizimitp on an odesa bled o mA notelpitl uhmt iew n ooltacitne di
aeva hna cledo msisir c”we n .“Asesir cgnillifluf-fle sf oytilibisso ptnatluse reh tdn aairbiliuqe
ev anh alced ogmnizimitpo-n osanaere h,w)499 1n(oss adM nnaeza r nD si,amuirbiliu qeeuqinu
.)6991 (namgur Ky bdessucsi ds a,airbiliuq eelpitlum
rie h ytdbeziramm u 5ssrioivah erbotaluce p,selpma xre o,f)69 9,1499 1d(lefts b nOI
tnemnre v foeaogsnops elramit pe o hndtoenoitidn oycllanoit a,rnoitaula v fesaodnoitatcepxe
htiw knownnos s,a)M49 9n1o(s s dan nMe.azk ac roeDhgsdelw onn o ksmo emtavoictce jbo
naisey amBo rnfoitaulav e fdyotilibabo rep hetvir e)d799 1e(nna edJ ndaiasn edB n,a)5991(
roivah eebvitaluce prselpm ihsc u fmsoled o nmti u,bep yntwonk nsu’rekamycil oep h ntgonitadpu
. er edhetnese rnpa hetsnef eddna
5
wnreoonitareneg-ts rriefh tdyiebesse r ttsosknca tetvaitaluc etfpcose plsaaic udrrc iAht
tseret nmiret-tro hgsnisi a yrebt aergnahc xdeex idafnef esdtnemnrev oygn atma h stsiled osmisirc
nn einees tesf tioeagrnah cdx eeef xsoainfe feetdar-tse r.es tenvIre sgenriwor rsroeobtar
.kcat teavitaluce p fseoc aef h ntrioivah etbnemnrev o fgsoled o nmtines byalegr atl u,becitcarp
)mret-troh sns(iesaerc npira he ssnuet fsokn albar t)n .ewCol esbnoitpec xeem osssucs iedW(
noitaluce pesgr aelc n. ieSlpm i ssnioitiut nciis ae.b hsTwolft ueovres emre t osstet atrseretni
deworr oe bhgtni sd unmaret-tro hyscnerr uccitsem ogdniworr osbevlov nniet fyocner r tuascniaga
tseret nginisi ayrlpra h,skn albartn eec hmto rsftes sdaetanimon eydcnerr uncgier oyf u obstdnuf
ev ashelpma xrealucatce ptss oem h fteom o. Sy(lts oyclemert xgeniworr ohbc uesk alml iswetar
gniwo r tr fsotoobsc e)r.e s teifn hsIiltaab u nnnona,a%0001 - g0on0ti5 ssie rttasrere ttnhiginrevo
tro hrsie hetso llcl iywe h,tnoitaula v meaod rtfcep xserotaluce ptsa hnti algatip ae chetvo bsaesir
.kn aeb h otktc aybcnerr uncgier olfl eds nsanoitisop 6yltca xeer osmcinahc eem hrtedis n o ec W(
lartn ee ch,tkcat teavitaluc e fepaoc sae fhnetit aergnahc xe ehdtn e)f .eowdTo l ne4obitc ensi
hc uts u,bem i ftsodoir eeplbigilgen-n orn ohfg iyhr esvet atrseret npie e okdte eyn akmnab
fnooitiut nciis ae bh sst.ii shkTcat teagaruocs iotdtneiciff ueorsbtaep pdalu oswnoit ceamertxe
.e sne fe ettdasreretni
er odmetnu otm oyne het rya h, wd? nlAufsseccus nsuesnef eedt atrseret nei rnae hythW
e h ft,i st ia? hnToitse utqsr ief hgtnik s natinereh n sinioitse udqnoc ees h otrtews ne?a nnOetfo
.net feor odme st u o stntiia hgtnisirpr ut s o stn,iievitceffe nsdiaeviecr esepisnef eedt atrseretni
.evitcepsr elpacitero e mhao trnfoitse utqsr ie fhgtnirolp xodetetov esrdiep aspi hfktol uebhT
rie h fteosuac esberusse repvitaluce pnsepm a odlti ayf asmet atrseret nhig itha hetug rlal iewW
shici hrwews nn,aadetnu ot moe nrsaesnef ey dhorwtews nraehto nsea ir.e thnTetn olcangis
fnie v,esesnef eedt atrsere t. neIt aergnahc xee h fteosnef e fdloed ogmnizimit pyo n oaltartnec
6kca tetvaitaluc erpes t nesadec ttasrere thn giriehhte thuw ombsaicitp eek msesoris ehT
re vnoozir oe. h hdfteIvlov nsieduting ae m hoet tugdniworr oftbos oe chstesi aterisuac eyblpmis
yliranidroart x oedtesi a ertbs usmet atrseret n,itro hyslemert x sedietcep x senioitaulav ehadcihw
,elpma x re. onFoitaulav eddetcep xlela mnase v seeire hnte hnwoitaluce prset e odstlev ehlgih
tnecr e5 p.fn0ooitaulav etdhginre vdoetcep xn,eatseret noeinr osbtes syacnerr uncgier ofnfieve
% 0r (e0 eft5tvoasorere tlna iu ennrnaiau qdelruow ( 1 . 005 365 &1 ) × 100 ’517 ) to make
. )899 1z(tilgi t nSnioissucs ied he.t eeSlbatiforp nnuoitaluceps
6
citsem oed h ntsoet ahrg i fhtocap meivitag een h fteosuac e,bylts oecti u eqnb a,clufsseccus
tnemnr ee v kao yagsamtm seosc eth atehztil asetrnapicit rtaepk r,armev o.ey rmooMnoce
ne4ilb a,Telpma xre o,fe e. Sy(cnerr uec hdtnef e odhtguo nheg ishet atrseret neisi a orgtnilliwnu
nosa eyrrami rep h stsai htts islreda rttekr admeyevr uhsci h nw,i]399 1z[solp ydW nnaeergnehciE
r)u .osFisi rM cR2E9 9r1ebmetp ee S hnstieicnerr urcie hgtnidnef epeduv asgtnemnrev ongiatrec
yllaicep s,eytivit ccaimono c netocap meivitag e:ndenoitn eymllaren eeg rtacap meivitag e fnsoaera
yllaicep s,eset atrseret neigagtr o nmtocap meivitag e;ndesserp e sdnae e ssyimono cee hntehw
et aergnahc xe ehfetosnef ed dnsaet atrekr aymen oodmtexed nyiltcer ie drsaet aerse hntehw
,modgn idKeti neU h fteos aec h ntsi as(doir etpnacifing irs ohfg ishet atrekr agmnidl osheriuqer
tfcoa p;m)ise ttaerk rm art mer dtooehtk sn,isle tganrit a esotrelaagfagt re %eomf0rmoo9ehhw
.mets ygsnikn aeb h ftnooitazilibats eedlbiss o,pd n;aticif etdegd ueb hgtnisaerc n nisoet atrseretni
hgi hai vdnefe do tgnisooh cn iffoedar taseca freka mycilo pgnizimixa meraflew-laico sa,ecneH
tsnia geat aergnahc xdeex ief hgtniniatni a fmsotifen eebvital eer hhtgi e owgtniv a,hset atrseretni
fsonoissucs i odltartn e ecdbluo hfsfo-eda rh atc. usSet atrseret nwi oglniniatni a fmsotifen eebht
.sesi ryccnerr ud cnsakcat teavitaluceps
seit adrex i.e fehfrtIut atnneref f fhiaogduo h,tsts os caohs leasnef egdniworr oAb
o,sdesrev eelrbl ikwcat tnae hhtt idwetaicos swaolft ueovres ee rhnte h,tdednef eydllufsseccus
s ihhgtu o,hgtniwor rtfo sobtoscere t ents.hi sikt eo chcdaT ibyalpi s neagabenciwor rtoabht
mret-tro hgsnitsi xreed nsukn albartn erceh tmoo r sfginiworr oy fblilaicep s,eegr a eltb oynam
ngier o nfnioitis otpro hes hgtniso lnce h,tnoitaulav e sadeire h ft,ireve w. osHeitilic agfnicnanif
d nsanoitis otpro hrsie httim i olstkn albartn escda ehlci hswi h s.t tiyIlts oecti u eqnb ayccnerruc
retae rnsgii hrtedi s.n eoescWnef egdniwor r ftoaosb otccer ildapicni re phstetutitsn ohccihw
.esnef e fadsocinahc eem hrtedisn o ecnwe hlwiated
.sledo mlaciteroeh tgnitsix eweive rylfeir be w,ecnediv elaciripm eeh tgniweive rerofeB
ticilp x neeav ihgci hewso h,tsesi ryccnerr u fcsociman yed h ftsoled oymn aem reare hhtguohT
fsaocinahc ee mhgtnisser tlse d soatmnese r]p799 1l.[l ear Lae rreasnef eedt atrseret nnoeiatlor
drawr ogfnidivo r npsikn agbnikam-tekr a fmrooivah ee.b heTsnef edd nkacat teavitaluceps
lufer ahact i,wecnenimo rnpev i sg)iwol en4boitc eese ss(rotaluce p ysdbednam esdtcartnoc
kn albartn efecoerg ee dhttuo bnaiatrec ne uryae hnte hsweigetar trsie hfntooissucsid
7
noisre vsa t nisodnep ehdci hnwoitcn usfs ogalniv a shdaeled o smkin albartn e ec. hnToitnevretni
tsere tlnaimi t dnp,naosae ttasrere thntio oeomrtsi s se dtdsnieas seoglnah cnxgeie rdoeftce poxte
lli wffoedar tralim i .sAmelbor pnoitazimitp os’kna blartne ceh tmor fdevire ds iycilo petar
noital eer httuo blaufthgis neiti u sqriep ae.p hkTn albartn eec h ftgoniled orm ueotavitom
se e la ov,otnirrige v.es wroo Htsfcmoaelb oercpi o e hdhecntrautcu rltasnoitutit s ennhietewteb
ort o,nlaicu r sceiveil eeIbus s ni,asevitcej bso’kn albartn eec httuo bnaoitamrof nticefrep moit
. stest ea rr)eet lnetdbihs e atofh soicogsotriapah(pvo
,noitamrof nciirtemmy sraed neusnef eedt atrseret nflioe d soatmnese r)p999 1n(ezarD
e h nt,ireve w. oeH ntoa h otetuqinhc egtniled o nmrialim i ssriep aspi h,tylgnisirpr uts odnna
ylem a,nnoitse ucqifice pe s nnsoou c do Infeasnef egdniworr oe bhrtedisn ot c oroInedp arpeilrae
s)aaset atrseret nhig ia hinvoitcurtsn oy cbe(t adrex ie fhgtnidnef eftdonetn oncoitamrof neiht
e h otstuogola n sasii h. Tn(ekatred n sueisnef eed hhtci h nwsiecnatsmucr iec h ftnooitcnuf
neza rdD nianilotr a nBnioitazilareb itlnuoc claatip a fctonetn oncoitamrof nei h ftnooitseuq
er osrmiep atpnerr ue ch,te c)n .enHekatred nsnuioitazilareb inle hfnwooitc n su]aafb7991[
fyoteir arveta e slraal g es,wasesnef eedt atrseret nd inganiworr ohbt ogbniredisn o,clareneg
noitamrof nei hytlem a,nnoitse utqnereff inaddoesuc oofs l s atiti u,bserutcur tnsoitamrofni
.yratnemelpm osncae eedsbluo hssrep ao pw.e tsheTsnef efsdoep yttnereff iftdonetnoc
et atrseret nflioed ocmiman yt dudoekr oywllufe r taancese r]p999 1h[g éd VniarihaL
n,ier edhetnese rep neo hmto ryfllaitnatsb ussreff itda hlted o nameivitaluce pgasnir uydcilop
e hhtci h nwlied o”mnoitareneg-tsri f sa“lied o em. hsTuc otfnereff irdie h fteosuac etbr aepgral
nooti s eion u ctaadrehedth t,asrevre stfseu onroku nrlaabrt n eeehcstua cseebspal leo tcdaerxif
n ielo ro nsyal pnoitamrofn icirtemmys A.elbisae fyllacinhce ts isih thguoh tnev egnidnefe dpots
ognni eebre hhtt i,wtnereff iedti u sqyicil oept atrseret n fieorut aen h,tdno c. esSisyla nraieht
led oym n n.a sieAsnef egdniworr o rbeot atrseret n ninaeewt eebcio hec h ftnooissucs itdicilpxe
e hr torfed rnsoites sfyaotilibatutitsb utscefrep meim oetsbs uemre h,tesnef eedt atrseret nfio
ht otba hetmus shag éd Vniar i.h yacLil oept atrseret neivit cneaigag noeetl b eoakbtn albartnec
syitilibatutitsb utscefrep meire h,wytidiuq ieldivo rdpn odbiuq iclitsem odad nyacnerr uccitsemod
r odfna m. enDoitcn uyftili tsu’remusn oec h ntsitnemug reatarap e sshat ogbnica l ypdbeledom
,noitcnu fas isdno bdiuqil inter aliasd nroablu gene tortasrere t ennhietew teecbneref f ei,fhdot
8
yci leo tptasre r.ek t nnlaIabrt n eedyhcebtllort nroect t ea,hlstd ndoibu qeni toltasrere t endhinta
nsiegna h ncnioitcn u safsadn odbiuq i nleot atrseret nei hetgna h ochtc uwm o yhgbnisoo hsci
citsem osdek asmet arremr osfi hgtnisaerc neire h,wset atrseret nlianim o fnloev ellaren eeght
e ttasrere t eneshiviti tec ra eoehmstnop sse irrsheit h. ge eivhhiTtcar tet rasotme syscanerruc
.l e d eopm yt -nam ggo untariKdnopser reoscnop shoe tnr,iewsnefed
eh tyale dya mesnefe devitc aero matah ts isisylan ahgé Vdn airiha Leh tn itluse rye kA
sti a. hsWisi rnacets alhl itwni onpiatr edacnoy esbet atrseret nginisi atr u,bn utrro hes h ntsiisirc
nsotnemy atpsere t” n.Icitemhti rtAsiraten otMnasaelpn Ue“callaW-tnegr a sSlied ormie hgtnivird
yadbecnan i ef,btniartsn otcegd ulbaropmetret nsi’tnemnrev oeg hat i,vts uymcnerr uccitsemod
ycnerr uec httsnia gearusse rgpniyfisnet nnioitalf nriehg i fhnooitatcep xee h,tx antoitalf neirutuf
t u,blamit pgoni etb oensnef eldl u ofstda esl i” h.Tcitemhti rtAnasaelpn Ue“callaW-tnegr aaSla
. set atrseret nhig ifshots oe chfwtoe idveti m oeiatuld
se ttasrere tgnniis isfatorce f ef efhelfho teott dnaoems e)r5p9 9r1e(cn e dprnSeabraG
laren e ea gobttna etm o s.n tigInigd echiman yldamit p nodiegag nee rsatnapicitr atpekr anmehw
saeavitceffe nsiet atrseret nginisi aerk aym asmeigetar tgsnigd elhamit pwo owho h ostt u,bledom
esuac esbesi rsai htta hetug ryae h,tylgnitsere t. nsItcef feesrevr e opdta eyl atmc a nfdi neasnefed
s aseta rtseretn in iesaercn in a”terpretni “yllacinahce mya msmargor pgnigde hcimany dlamitpo
y unba hrteht alrl e osstregd eghnida eslu h,tnoitaulav e fadyotilibabo rrpehg igahnilangis
hat itwieb l,agnik aem r eatwnemug rea hytlesice r sps ii. h)eT9tonto oefe sy(cnerr uccitsemod
.tceff eeh tgniylredn umsinahce mtnereffid
3. The Interest Rate Defense in Practice
sdraw oet y nehat i,wecnedi vleacirip mee h fteom owseiv eyrlkci u eq,wnoitc essi hntI
. eruli arfae lra cosnsecc ursae lracehti e sneisnef eedt atrseret nhig itaha hrteda eer hgtnicnivnoc
.stlus edrex ihmt i,wsesnef erdalucatce pesm onse eebv aehrehT
t wu2 ob 9alt9ss1u g.eue tAsnanIle freadlucat cdf eeoap tsniec t efns soeiaadcewS
re p%( 6 o1ett agrnidn ellanigr atmhginre veo hdtesi akrnabsk ieR h;tnag ewbolft uloatip aycdaets
,r8ebmetp e,Syad s.e duneTOdroc eerr eswwolf nlila md sn,a)deto usqet ale rars,aamunna
d nnae pototuo bear emwlohkco tnsSitekr asamakkr ae mhgtnitao ls fatdwiecnuon ndanalniF
9