The purpose of this paper is to estimate a rudimentary model of the “rest of the world", which may serve as the foreign sector in a model of the Swedish economy. The “rest of the world" is here represented by the US and the euro zone which together cover some two thirds of the Swedish...

This paper presents a theoretical model of the term structure of interest rates based on the monetary policy decision-making process at modern central banks. Evaluations of explicit expressions for the spot and forward rate curve render several important results: (i) Spot and forward rates are...