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Tax Changes and Capital Allocation in the 1980s

Hendershott, Patric H. - 1986

The paper begins with presentation of a methodology for computing rental costs of capital under any tax regime.Tax law … inflation on interest rates and the allocation of real capital. The model allocates a fixed private capital stock among various … classes of nonresidential and residential capital, depending upon the rental costs for the capital components, the price …

Persistent link: https://www.econbiz.de/10012477164

The Response of Interest Rates to the Federal Reserve's Weekly Money Announcements : The "Puzzle" of Anticipated Money

Deaves, Richard - 1987

Researchers, using the survey conducted by Money Market Services, Inc., have found that the anticipated component in the Federal Reserve's weekly money supply announcement is negatively correlated with the post- announcement change in market yields. We prove that eliminating a (downward) bias in...

Persistent link: https://www.econbiz.de/10012476944

The Fisher Hypothesis and the Forecastability and Persistence of Inflation

Barsky, Robert B. - 1986

For the period 1860 to 1939, the simple correlation of the U.S. commercial paper rate with the contemporaneous inflation rate is -.17. The corresponding correlation for the period 1950 to 1979 is .71. Inflation evolved from essentially a white noise process in the pre-World War I years to a...

Persistent link: https://www.econbiz.de/10012477147

Interest Rates, Money Supply Announcements, and Monetary Base Announcements

Huizinga, John - 1985

This paper presents a new set of empirical regularities on the link between interest rates, money supply announcements and monetary base announcements. Among the main findings reported are: (i) unexpected increases in the announced monetary base have a significantly positive effect on interest...

Persistent link: https://www.econbiz.de/10012477375

Monetary Policy Regime Shifts and the Unusual Behavior of Real Interest Rates

Huizinga, John - 1985

A striking phenomenon of the early 1980s is the climb in real interest rates to levels unprecedented in the post-World War II period. In order to understand this phenomenon, this paper investigates the nature and timing of shifts in the real rate process to determine if the recent unusual...

Persistent link: https://www.econbiz.de/10012477402

Money, Credit and Interest Rates in the Business Cycle

Friedman, Benjamin M. - 1984

Fluctuations of business activity in the United States clearly have their monetary and financial side, but these aspects of U.S. economic fluctuations exhibit few quantitative regularities that have persisted unchanged across spans of tine over which the nation's financial markets have...

Persistent link: https://www.econbiz.de/10012477605

Estimating the Long-Run Relationship Between Interest Rates and Inflation : A Response to McCallum

Summers, Lawrence H. - 1984

This note demonstrates that Bennett McCallum's recent critique of low frequency estimates of macro-economic relationships is of little empirical significance. It also demonstrates that readily available and frequently used techniques can be used to diagnose the problem McCallum raises. Finally,...

Persistent link: https://www.econbiz.de/10012477640

The Effects of Inflation and Money Supply Announcements on Interest Rates

Urich, Thomas - 1984

This paper examines the impact of the money supply and inflation rate announcements on interest rates. Survey data on expectations of the money supply and consumer and producer price indexes are used to distinguish anticipated and unanticipated components of the announcements. This distinction...

Persistent link: https://www.econbiz.de/10012477775

Some Issues Concerning Interest Rate Pegging, Price Level Determinacy, and the Real Bills Doctrine

McCallum, Bennett T. - 1984

In a recent paper, Canzoneri, Henderson, and Rogoff have shown that it is possible for the monetary authority to peg the nominal interest rate without creating price level indeterminacy in a simplified version of the 1975 Sargent-Wallace model. The present paper begins by reviewing that result,...

Persistent link: https://www.econbiz.de/10012477801

Unanticipated Money and Interest Rates

Roley, V. Vance - 1984

Evidence on the relationship between unanticipated money and interestrates has been provided by two types of studies. First, several researchers have investigated the relationship using quarterly data. Second, a number of researchers have examined the effect of money announcement surprises on...

Persistent link: https://www.econbiz.de/10012477818