English, Article, Journal or magazine article edition: The symetry underlymg real interest rate behaviour and the limk to investment flows: an ex ante formal treatment Alejandro F. Peláez Ruiz-Fornells

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/9662
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • The symetry underlymg real interest rate behaviour and the limk to investment flows: an ex ante formal treatment
Author
  • Alejandro F. Peláez Ruiz-Fornells
Physical Description
  • preprint
Notes
  • From a purely speculative approach and under the usual assumptions, a wellknown symmetrical structure appears, connecting neoclassical and Keynesian views of the markets. This framework admits graphical and formal explanation. In previous work, we addressed this topic reaching some conclusions. Now that the credit bust spreads worldwide, we focus on formal analysis leading to more advanced results linked to our previous perspective that seems to hold. Using an ex ante formal treatment, we conclude that when applied to explain real interest rate behaviour, this symmetrical look shows a countercyclical pattern of response for this variable in neoclassical approach, while being procyclical from Keynesian view. This implies either a magnifying or a stabilizing role for the real rate in each case and could affect the financial to real investment flows ratio and, as a result, aggregate capital stock composition. The trend this ratio could follow, though difficult to explain, is of great interest to help explain the behaviour of financial markets. This appears as a key feature to approach the focal points of the financial markets reform
  • RePEc:ucm:doctra:09-03
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • 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