| Description |
1 online resource (32 pages) |
| Series |
IMF working paper ; WP/06/112 |
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IMF working paper ; WP/06/112.
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| Contents |
Contents -- I. INTRODUCTION -- II. LOW GLOBAL INTEREST RATES: POSSIBLE EXPLANATIONS -- III. A MODEL OF INTEREST RATE DETERMINATION -- IV. EMPIRICAL EVIDENCE -- A. Data and Methodology -- B. Empirical Results -- C.A New Economy of Interest Rates? -- V. CONCLUSIONS AND POLICY IMPLICATIONS -- REFERENCES |
| Summary |
This paper explores the determinants of long-term government bond yields in the Group of Seven (G-7) economies and analyzes the factors that could explain the conundrum of very low rates in the face of a variety of adverse factors in recent years. In particular, the paper focuses on the deteriorating fiscal position in the G-7 economies and enquires which factors could have offset their impact on long-term interest rates, and how sustainable they are likely to be. A model of interest rate determination is elaborated and estimated for the G-7, with explicit emphasis on capital flows and public savings. The results suggest a high likelihood of a substantial impact of the weaker budgetary positions in the G-7 on global interest rates when the offsetting unprecedented capital flows slow down |
| Bibliography |
Includes bibliographical references |
| Notes |
Master and use copy. Digital master created according to Benchmark for Faithful Digital Reproductions of Monographs and Serials, Version 1. Digital Library Federation, December 2002. http://purl.oclc.org/DLF/benchrepro0212 MiAaHDL |
|
digitized 2010 HathiTrust Digital Library committed to preserve pda MiAaHDL |
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Print version record |
| Subject |
Interest rates.
|
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Fiscal policy.
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Fiscal policy
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Interest rates
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| Form |
Electronic book
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| Author |
Kumar, Manmohan S., author.
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| ISBN |
1283514915 |
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9781283514910 |
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9781451909067 |
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1451909063 |
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