The effects of open market operations and long versus short bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return....

The effects of open market operations and long versus short bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return....

This paper sorts out competing explanations of high real interest rates and banking crises in open economies.

This paper sets out a methodology for analyzing high real interest rates in developing and traditional economies.

This paper sorts out competing explanations of high real interest rates and banking crises in open economies.