The impact of net international capital inflows on nominal long-term interest rates in France
AbstractPrevious research on the impact of net international capital inflows on domestic interest rates has been exclusively founded in regression analysis and has yield mixed results. Some studies find that net capital inflows reduce domestic interest rates, whereas others find no such impact. The present study, which applies cointegration techniques to quarterly data over the 1973-93 period, finds that such capital inflows to a major industrialized nation, France, may not only reduce longer term interest rates in that nation but may also offset a large portion of the longer term interest rate impact of that nation's government budget deficit.
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Bibliographic InfoArticle provided by International Atlantic Economic Society in its journal Atlantic Economic Journal.
Volume (Year): 25 (1997)
Issue (Month): 2 (June)
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Other versions of this item:
- Cebula, Richard, 1996. "The Impact of Net International Capital Inflows on Nominal Long-Term Interest Rates in France," MPRA Paper 49401, University Library of Munich, Germany, revised 26 Jun 1996.
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
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