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1 edition of determinants of real long-term interest rates found in the catalog.

determinants of real long-term interest rates

determinants of real long-term interest rates

17 countries pooled-time-series evidence.

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  • 18 Currently reading

Published by Organisation for Economic Co-operation and Development in Paris .
Written in English

    Subjects:
  • Interest rates.

  • Edition Notes

    Includes bibliographical references (p. 40-41)

    SeriesOECD working papers,, vol. 3, no. 42, OECD working papers;, v. 3, no. 42.
    ContributionsOrganisation for Economic Co-operation and Development.
    Classifications
    LC ClassificationsHD72 .O38 vol. 3, no. 42
    The Physical Object
    Pagination43 p. ;
    Number of Pages43
    ID Numbers
    Open LibraryOL539484M
    LC Control Number96118322

    Existing models fail to explain the large fluctuations in the real exchange rates of most currencies over the past twenty years. The Natural Real Exchange Rate approach (NATREX) taken here offers an alternative paradigm to those which focus on short-run movements of nominal eschange rates,purchasing power parity of the representative agent intertemporal optimization models.5/5(1). This is “The Determinants of Interest Rates II: The Term Structure”, section from the book Finance, Banking, and Money (v. ). For details on it (including licensing), click here. This book is licensed under a Creative Commons by-nc-sa license.

    mining the evolution of interest rates and bank loans. 2. MODELLING BANK INTEREST RATES Theoretical determinants The evolution of bank interest rates in different credit segments refl ects a diversifi ed set of factors. A fi rst factor is the global cost of funding for institutions. Most of the literature which studies the deter-. Major Determinants of Interest Rates Inflation Inflation is a factor that decisively affects the nature or outcome of interest rates. “Inflation is an increase in prices of goods and services over time”(Financial Institutions, Instruments and Markets, ). Inflation is the natural byproduct of a .

      John Maynard Keynes mentioned the concept in his book The General Theory of Employment, Interest, and Money (), discussing the connection between interest rates and supply/demand. In real.   The nominal long-term interest rate decreased in the past decades due to the decrease in (expected) inflation and in potential growth and due to changes in the age structure of the population. This conclusion is based on our survey of the literature and our empirical findings for the long-term interest rate in high-income countries since


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Determinants of real long-term interest rates Download PDF EPUB FB2

13 Exploring Determinants of Long-Term Interest Rates FAISAL AHMED AND LUCA ANTONIO RICCI In South Africa, long-term interest rates have often been high in real terms and relatively volatile, although they declined somewhat in recent years (Figure ).

Determinants of Long-Term Interest Rates: An Empirical Study of Several Industrial Countries Author: Howard Howe and Charles Pigott Subject: Interest rates Keywords: Real interest rates, Japan, Germany, United Kingdom, France, United States, macroeconomic policy, monetary policy, equilibria, Wicksellian framework, equilibrium, government debt.

Real interest rates on long-term financial assets play a central role in linking financial markets to the economy at large. Over the last fifteen years, these rates have risen steadily in the United States and some key foreign countries. DETERMINANTS OF REAL LONG-TERM INTEREST RATES IN EUROPE: “IS IT A FISCAL PHENOMENA?” A thesis submitted to the Faculty of the Graduate School of Arts and Sciences of Georgetown University in partial fulfillment of the requirements for the degree of Masters in Public Policy By Fatih Kaya, B.A.

Washington, DC Ap Real interest rates: movementsand determinants The real interest rate is an important determinant of the saving and invest-ment behaviour of households and en-terprises and therefore of key import-ance in terms of cyclical development and long-term economic growth.

It is therefore vitally important to ask whether the real interest rate level isFile Size: KB. DETERMINANTS OF LONG-TERM INTEREST RATES: REAL FORCES OR CONVENTIONS. by Mario Seccareccia and Marc Lavoie* * The authors are both Full Professors at the Department of Economics, University of Ottawa, and they are especially grateful to A.

Sood for his excellent technical assistance. DETERMINANTS OF LONG-TERM INTEREST RATES. Adrian Orr & Malcolm Edey & Michael Kennedy, "The Determinants of Real Long-Term Interest Rates: 17 Country Pooled-Time-Series Evidence," OECD Economics Department Working PapersOECD : RePEc:oec:ecoaaaen DOI: / INTRODUCTION Real long-term interest rates are key determinants of longer-term saving and investment decisions, while their influence on business spending, household investment and the consumption of durable goods plays a key role in the business cycle File Size: KB.

long-term interest rates and German short-term interest rates to German long-term interest rates, thus supporting the expectation hypothesis. Monetary policy is also a relevant potential determinant as long-term inflations expectations are an important part of nominal long-term interest rates.

The Determinants of Real Long-Term Interest Rates 17 Country Pooled-Time-Series Evidence In this paper a model is presented and estimated that explains real long-term interest rates in terms of developments in low-frequency and high-frequency economic factors in a multi-country framework, using a data set covering 17 OECD countries since the Cited by: The determinants of long-term nominal interest rates have not yet been fully explai-ned by either economic theory or empirical studies.

Since long-term nominal inte-rest rates are the sum of long-term real interest rates and inflation expectations, any macroeconomic factor that impacts expected inflation, real rates or both should af-File Size: KB. On the determination of long-term interest rates and exchange rates Michel Dombrecht and Raf Wouters Introduction Empirical investigations of the behaviour of interest rates are mostly based on a loanable funds theory.

Well known examples of this approach are Evans (), Hoelscher (), Barro and Sala-i-Martin (). fiscal conditions raises long-term interest rates. The literature mainly suggests two channels through which fiscal conditions influ-term interest rates: crowding ence long out and default risk.

Through the first channel, greater government funding leads to a smaller fund supply for private agents, which results in a higher long-term interest rate.

Also, interest rates can influence the future expectation of the level of inflation either by short-term interest rates or long-term interest rates.

The differences between short-term interest rates and long-term interest rates are that the short-term interest rates are kept lower to entice the borrower for a shorter period of time as compared. Determinants of Interest Rate: Empirical Evidence from Pakistan.

real interest rates and diff This paper examines the question of whether long-term or short-term interest rates should. Macroeconomic Determinants of Interest rate Spread in Ghana: Evidence from If variations of interest rates can be linked to the stance of monetary policy, then an affect the interest rate spread with a view to determining their short term and long term relationships and seeking for File Size: KB.

Determinants of Real Long-Term Interest Rates: 17 Country Pooled-Time-Series Evidence. Publisher: [Place of publication not identified]: [publisher not identified], The purpose of this study was to analyze the determinants of long-term interest rates in the United States, using quarterly time series data points extending from to   Short- and long-term real rates were found to be cointegrated with government deficits, government debt relative to GNP, private wealth, real balances relative to GNP, demographic factors and the marginal productivity of capital; demographic, fiscal, and monetary policy variables appear to be particularly by: 6.

Get this from a library. The Determinants of Real Long-Term Interest Rates 17 Country Pooled-Time-Series Evidence. [Adrian Orr; Malcolm Edey; Michael Kennedy]. interest rates are determined. As the focus in this dissertation is on short-term interest rates, long-term interest rates will be mentioned only briefly.

As far as the determinants of short-term interest rates are concerned, the basic question in this dissertation is whether they are .Long-term real interest rates across the world have fallen by about basis points over the past 30 years.

The co-movement in rates across both advanced and emerging economies suggests a common driver: the global neutral real rate may have fallen. In this paper we attempt to identify which secular trends could have driven such a fall.This paper examines the factors which influence the behavior of real interest rates in the United States over the long run.

Data on real and nominal returns to bonds and equities are tested for unit root non-stationarity. The results indicate that real and nominal interest rates and inflation are integrated of order one while the evidence on returns to equities is mixed. Short- and long-term Cited by: 2.