The Impact of the Federal Budget Deficit on the Nominal Interest Rate Yield on U.S. Treasury Notes, 1979-2001
AbstractThis study empirically examines the impact of the federal government budget deficit on the nominal interest rate yield on U.S. Treasury notes over the 1979-2001 period. In a system that includes the monetary base, the civilian labor force unemployment rate, the ex ante real 52 week Treasury bill rate, and the percentage real growth rate of the S&P 500 stock index, ECM (error-correction model) estimation finds that the total federal budget deficit acted to increase the nominal interest rate yield on seven year U.S. Treasury notes over the study period
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Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Applied Economics.
Volume (Year): III (2004)
Issue (Month): 2 (March)
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Other versions of this item:
- Cebula, Richard, 2003. "The Impact of the Federal Budget Deficit on the Nominal Interest Rate Yield on US Treasury Notes, 1979-2001," MPRA Paper 49400, University Library of Munich, Germany.
- E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- G1 - Financial Economics - - General Financial Markets
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