A Nominal Theory of the Nominal Rate of Interest and the Price Level: Some Empirical Evidence
AbstractThis paper aims to investigate the impact of the bond/money ratio on the nominal interest rate. The econometric model chosen fits a dynamic panel data for Canada, Japan and US over the period 1980-2006. We found empirical evidence that Ricardian Equivalence does not hold. The analysis indicates, for the three countries, that the bond/money ratio affects the nominal interest rate.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 4 ()
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Government debt; Ricardian equivalence; bond/money ratio.;
Find related papers by JEL classification:
- H6 - Public Economics - - National Budget, Deficit, and Debt
- E2 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment
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