Thrift, Productivity and the Real Rate of Interest in Australia
AbstractIn a small open economy, it is common to regard the domestic interest rate as a function of the world rate plus a local risk premium. At the same time. Irving Fisher's longstanding theory of the real interest rate emphasises the twin domestic forces of consumer thrift and producer productivity. This paper tests for a relationship between the Fisher variables and Australia's real interest rate. It is found that these two variables explain well the observed stationarity of the Australian real rate of interest since the early 1980s, indicating that thrift and productivity provide a robust theoretical framework for the macroeconomic factors that determine the risk premium. 2 downloads: http://www.eap-journal.com.au/download.php?file=362 and http://www.eap-journal.com.au/download.php?file=363
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 29 (1999)
Issue (Month): 2 (September)
Consumer; Interest Rates; Interest; Productivity;
Find related papers by JEL classification:
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
- E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Manuela Torgler).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.