Author: Robert E. CumbyPublisher:
ISBN:
Category :
Languages : en
Pages : 0
Book Description
The International Linkage of Real Interest Rates : the European-US Condition
Author: Robert E. CumbyInternational Interest Rates Linkage
Author: Mehdi S. MonadjemiPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 36
Book Description
The International Linkage of Real Interest Rates
Author: Frederic S. MishkinPublisher:
ISBN:
Category :
Languages : en
Pages : 19
Book Description
Casual observation indicates that in recent years real interest rates in the United States appear to have risen sharply and have remained high relative to historical standards. Many observers have claimed that these high real rates have been transmitted abroad and have lead to high real rates in the rest of the industrialized countries. Concern over the level of real rates has been widespread in the analyses by economic policymakers both in Europe and in the United States. In this paper we present evidence on several questions regarding the movement in short term real interest rates in eight countries that have been raised by the recent policy debates in Europe and the United States: Have ex ante real rates in the United States and Europe been high during recent years? Has there been a link between U.S. real rates and those in other countries? Can this link be quantified?The basic finding in this paper is that real rates have climbed dramatically from the 1970s to the 1980s in both the European countries and the United States. Indeed, real interest rates in the United States are currently at high levels unprecedented in the post war period, which rival the levels that occurred during the Great Depression. Complaints that real interest rates in the United States are exceedingly high seem to be well justified. There is also strong evidence that there is a positive association between movements in U.S. real rates and those in Europe. However, European real rates typically do not move one-for-one with U.S. real rates, still leaving open the possibility that European monetary policy can influence domestic economic activity
The International Linkage of Real Interest Rates
Author: Robert E. CumbyPublisher:
ISBN:
Category : Foreign exchange rates
Languages : en
Pages : 44
Book Description
Casual observation indicates that in recent years real interest rates in the United States appear to have risen sharply and have remained high relative to historical standards. Many observers have claimed that these high real rates have been transmitted abroad and have lead to high real rates in the rest of the industrialized countries. Concern over the level of real rates has been widespread in the analyses by economic policymakers both in Europe and in the United States. In this paper we present evidence on several questions regarding the movement in short term real interest rates in eight countries that have been raised by the recent policy debates in Europe and the United States: Have ex ante real rates in the United States and Europe been high during recent years? Has there been a link between U.S. real rates and those in other countries? Can this link be quantified?The basic finding in this paper is that real rates have climbed dramatically from the 1970s to the 1980s in both the European countries and the United States. Indeed, real interest rates in the United States are currently at high levels unprecedented in the post war period, which rival the levels that occurred during the Great Depression. Complaints that real interest rates in the United States are exceedingly high seem to be well justified. There is also strong evidence that there is a positive association between movements in U.S. real rates and those in Europe. However,European real rates typically do not move one-for-one with U.S. real rates,still leaving open the possibility that European monetary policy can influence domestic economic activity.
International Linkage of Interest Rates
Author: Mitsuhiro FukaoPublisher:
ISBN:
Category : Bonds
Languages : en
Pages : 110
Book Description
International Linkages and Macroeconomic News Effects on Interest Rate Volatility
Author: Suk-Joong KimPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 46
Book Description
International interest-rate and price-level linkages under flexible exchange rates : a review of recent evidence
Author: Robert CumbyPublisher:
ISBN:
Category : Foreign exchange
Languages : en
Pages : 38
Book Description
"In an open economy, the scope for activist stabilization policy depends on the nature of the linkages between domestic and international markets for goods and assets. Two important relationships--purchasing power parity and uncovered interest-rate parity--have received extensive empirical attention in recent years and are fundamental building blocks of several empirical ex- change rate models. This paper reviews and extends recent econometric findings on these two classical parity relationships and on their corollary, the international equality of expected real interest rates. Econometric tests assuming rationality of expectations are on the whole unfavorable to the classical parity relationships: with few exceptions, they are strongly rejected. A central theme in the review of empirical work is the conditional heteroskedasticity of inflation and exchange rate forecast errors and the bias this statistical problem may impart to tests of inter- national parity relationships. The paper proposes and implements a test for conditional heteroskedasticity which in many cases produces strong evidence that the problem is indeed important"--NBER website.
International Linkage of Real Interest Rates
Author: Philip Inyeob JiPublisher:
ISBN: 9780733421990
Category : Cointegration
Languages : en
Pages : 29
Book Description
International Interest Rate Linkages and Monetary Policy
Author: John MurrayPublisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 68
Book Description
International Interest Rate Relationships
Author: J. T. KneeshawPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 76
Book Description