Ardagna, Silvia; Caselli, Francesco; Lane, Timothy - In: Topics in Macroeconomics 7 (2007) 1, pp. 1417-1417
long-term interest rates. In simple static specifications, a one-percentage-point increase in the primary deficit relative … to GDP increases contemporaneous long-term interest rates by about 10 basis points. In a vector autoregression (VAR), the …