cycle model with endogenous borrowing limits, capitalistic production and domestic productivity and international interest … the interaction of both productivity and international interest rate shocks with the borrowing limit is key. …

predictions of interest rates based on a general equilibrium theory are partially consistent with US data"--Federal Reserve Bank …"This paper investigates the behavior of short-term real and nominal rates of interest by combining consumption … that link interest rates to both the marginal rates of substitution and transformation in a monetary production economy, we …

output, exchange rate movements, and interest rate smoothing. Taking the posterior mean of the estimated parameters as …