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Interest Rates and Output in the Long Run

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  • Yunus Aksoy

    (University of Kent)

  • Miguel A. Leon-Ledesma

    (University of Kent)

Abstract

In this paper we argue that both statistics and economic theory-based evidence largely indicate the absence of long run relationships between the real output and the most relevant monetary indicator for the U.K. and the U.S, short term interest rates. These findings are not only a full sample result, but also valid in most of the sub-samples throughout the second half of the 20th century and are robust to the inclusion of possible omitted real variables. JEL Classification: E3, E4, E5

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Paper provided by Money Macro and Finance Research Group in its series Money Macro and Finance (MMF) Research Group Conference 2004 with number 92.

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Date of creation: 17 Sep 2004
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Handle: RePEc:mmf:mmfc04:92

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Web page: http://www.essex.ac.uk/afm/mmf/index.html

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Cited by:
  1. Bharat Chadha, 2007. "Impact of U.S. Federal Interest Rate and Movement of MSCI on Indian Capital Markets," Working Papers id:1024, eSocialSciences.
  2. Sushanta K. Mallick & Ricardo M. Sousa, 2011. "The real effects of financial stress in the Euro zone," NIPE Working Papers 12/2011, NIPE - Universidade do Minho.
  3. Faria, João Ricardo & Mollick, André Varella & Sachsida, Adolfo & Wang, Le, 2012. "Do central banks affect Tobin's q?," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 1-10.
  4. International Monetary Fund, 2005. "Monetary Policy and Corporate Behaviour in India," IMF Working Papers 05/25, International Monetary Fund.
  5. Reginaldo Pinto Nogueira, 2009. "Is monetary policy really neutral in the long-run? Evidence for some emerging and developed economies," Economics Bulletin, AccessEcon, vol. 29(3), pages 2432-2437.

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