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Interest Rates and the Net Deficit of All Government Levels Combined: An Empirical Note

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  • Cebula, Richard
  • Scott, Gerald

Abstract

This empirical note studies the impact of the net budget deficits of all levels of government in the U.S. combined on ten-year Treasury notes for the study period 1955-1984. It is found that this total net budget deficit acted to elevate the yield on ten-year Treasury notes.

Suggested Citation

  • Cebula, Richard & Scott, Gerald, 1991. "Interest Rates and the Net Deficit of All Government Levels Combined: An Empirical Note," MPRA Paper 49425, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49425
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    File URL: https://mpra.ub.uni-muenchen.de/49425/1/MPRA_paper_49425.pdf
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    References listed on IDEAS

    as
    1. Hoelscher, Gregory, 1986. "New Evidence on Deficits and Interest Rates," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 18(1), pages 1-17, February.
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    More about this item

    Keywords

    net budget deficit; ten-year Treasury note yield;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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