Bohm-Bawerk and his follovers took it pretty much for granted that an increase in the rate of interest would induce users of fixed capital, and thereby the economy in the agreegate, to economize on the need for stocks of fixed capital by resorting to methods of production with shorter average...

We use recently developed cointegration tests that determine endogenously the regime shift to test for bilateral real interest rate convergence (real interest rate parity) in the G7 against the US in the 1974-1995 period. In contrast with previous studies that employed classical regression...

This paper analyses how Canadian financial firms manage short-term interest rate risk through the use of BAX futures contracts. The results show that the most effective hedging strategy is, on average, a static strategy based on linear regression that assumes constant variances, even though...

After more than 50 years of economic growth, we are witnessing a world economic crisis generated by a multitude of economic, political, social and other factors. Banks have contributed to the starting of this crisis, especially by making some speculative investments with a high level of risk, as...

This paper takes a new look at the market for Index-Linked debt in the U.K.. I begin by clarifying the theoretical links between the observed prices of nominal and index-linked debt, and the term structure of real interest rates. This involves first estimating the "index-linked term structure "...