Reexamining the Term Structure of Interest Rates and the Interwar Demand for Money
AbstractThis paper reexamines whether the term structure of interest rates, rather than merely a single interest rate, should be included in the demand for money of the interwar era. In contrast to earlier work, we use cointegration techniques to model the equilibrium/error correction process, and find that a sufficiently rich dynamic model using a single interest rate has considerable explanatory power. Nevertheless, we conclude that the inclusion of the term structure may help to explain the turbulent monetary dynamics of the Depression era.
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Bibliographic InfoPaper provided by Boston College Department of Economics in its series Boston College Working Papers in Economics with number 384.
Length: 17 pages
Date of creation: 01 Sep 1997
Date of revision:
Publication status: published, Journal of Economics and Finance, 1998, 22:2-3, 5-12.
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Postal: Boston College, 140 Commonwealth Avenue, Chestnut Hill MA 02467 USA
Web page: http://fmwww.bc.edu/EC/
More information through EDIRC
demand for money; interwar period; term structure of interest rates;
Other versions of this item:
- Christopher Baum & Clifford Thies, 1998. "Reexamining the term structure of interest rates and the interwar demand for money," Journal of Economics and Finance, Springer, vol. 22(2), pages 5-12, June.
- E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
- E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
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For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F Baum).
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