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account inflation, short-term interest rates are negative in most developed countries, including Canada where the overnight …
Persistent link: https://www.econbiz.de/10013078473
Real interest rates have fallen substantially in advanced economies since the early 1980's. We show that this trend can be explained by a common pattern in fertility rates. Fertility rates fell in all advanced economies in the 1970's, and this led to an outsized cohort of 'baby boomers'. The...
Persistent link: https://www.econbiz.de/10013404138
The main objective of this study is to investigate the effect of interest rate, inflation rate, and GDP on real …, and inflation level) is employed. Study adopted Johansen test. Findings indicated that both trace test and max eigenvalue … inflation causes interest rate. On the other hand all other variables are independent with each other. Regressionwas conducted …
Persistent link: https://www.econbiz.de/10009755676
This article considers the current economic situation from the lens of modern money theory (MMT) and expresses a policy response rooted in post-Keynesian theory and empirical data for the US and the euro area. First, MMT supports targeted deficit spending to promote production. Increasing...
Persistent link: https://www.econbiz.de/10014433735
This paper aims to show why Irving Fisher's own data on interest rates and inflation in New York, London, Paris, Berlin … changes in inflation, not even in the long run. In Fisher's data, interest rates have more persistence than inflation and … change less than inflation over time. The Fisher effect is a misnomer unless it is taken to refer to what Fisher actually …
Persistent link: https://www.econbiz.de/10010496089
is stronger for countries with higher average inflation or debt. …
Persistent link: https://www.econbiz.de/10010189835
the G7 countries. We first show that nominal interest and inflation rates are better represented as I(0) variables. Later … inflation rates to nominal interest rates is very different than one. …
Persistent link: https://www.econbiz.de/10011654168
In the present paper we analyse whether fundamental macroeconomic factors, temporary influences or more structural factors have contributed to the recent decline in bond yields in the US. For that purpose, we start with a very general model of interest rate determination in which risk premia are...
Persistent link: https://www.econbiz.de/10012002995
The paper presents the welfare cost of inflation in a banking time economy that models exchange credit through a bank … welfare cost of a 10% inflation rate instead of zero, for comparison to other estimates, as well as the cost of a 2% inflation … rate instead of a zero inflation rate. The zero rate is specified as the US inflation rate target in the 1978 Employment …
Persistent link: https://www.econbiz.de/10012012509
interest rate and inflation rate across a time frequency space and then employ wavelet coherence tools to investigate the … interest rates and inflation for SACU countries in the post-2000 period, with stronger Fisher effects existing around the …
Persistent link: https://www.econbiz.de/10014500365