English, Article, Journal or magazine article edition: Deficits and long-term interest rates: an empirical note Yash P. Mehra

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/74984
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Deficits and long-term interest rates: an empirical note
Author
  • Yash P. Mehra
Physical Description
  • preprint
Notes
  • This note examines whether long-term nominal interest rates are cointegrated with budget deficits over the period 1959 to 1990. A key finding of this note is that long-term rates are cointegrated with deficits if a one-year ahead inflation forecast series is used to measure long-term expected inflation. However, the evidence favoring cointegration between deficits and interest rates weakens and almost disappears when inflation forecasts over longer horizons (2 to 4 years) are used. This result indicates that a one-year ahead inflation forecast series does not adequately measure long-term expected inflation. Hence, the link found between deficits and long-term rates using one-year inflation forecast series is spurious.
  • Budget deficits ; Interest rates
  • RePEc:fip:fedrwp:92-02
Language
  • English
Contributed by
OAIster

Get this edition

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment