Understanding the High Interest Rates on Italian Government Securities

This paper discusses several determinants of the differential between yields on Italian government securities and yields on foreign government securities. We concentrate on expectations of (at least partial) insolvency, tax factors and exchange rate expectations. The evidence suggests that most of the differential between the cost of Italian debt and the cost of foreign (for example, German) debt is due to exchange rate expectations.

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Year of publication:	1992-10
Authors:	Giovannini, Alberto ; Piga, Gustavo
Institutions:	C.E.P.R. Discussion Papers
Subject:	Exchange-rate Expectations \| Italian Debt \| Public Debt \| Risk-Premium \| Witholding Tax

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Extent:	application/pdf
Series:	CEPR Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	Number 720
Classification:	E42 - Monetary Systems; Standards; Regimes; Government and the Monetary System ; E43 - Determination of Interest Rates; Term Structure Interest Rates ; F34 - International Lending and Debt Problems ; H63 - Debt; Debt Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005114342