A Nominal Theory of the Nominal Rate of Interest and the Price Level: Some Empirical Evidence
This paper aims to investigate the impact of the bond/money ratio on the nominal interest rate. The econometric model chosen fits a dynamic panel data for Canada, Japan and US over the period 1980-2006. We found empirical evidence that Ricardian Equivalence does not hold. The analysis indicates, for the three countries, that the bond/money ratio affects the nominal interest rate.
Volume (Year): 29 (2009)
Issue (Month): 4 ()
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