How are the key Finnish market interest rates determined?
Finnish money markets have undergone profound changes in recent years. In particular, the transition to a more market oriented system has changed the way domestic interest rates are formed. This paper presents and quantifies one way of describing the structure and main linkages of the current setting. Key elements of the model are the dependence of the domestic market interest rates on the foreign interest rate, an explicit formulation of the dependence of the domestic short-term market interest rate on purely domestic factors, and explicit considerations of various institutional features of the domestic money market. Empirical evidence on the formation of the domestic short-term and long-term market interest rates as well as short-term and long-term lending rates is presented, and the results are broadly consistent with the theoretical structure of the model.
Volume (Year): 2 (1989)
Issue (Month): 1 (Spring)
|Contact details of provider:|| Web page: http://www.taloustieteellinenyhdistys.fi|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dixit, Avinash K, 1986. "Comparative Statics for Oligopoly," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 27(1), pages 107-22, February.
- Himarios, Daniel, 1987. "Devaluation, Devaluation Expectations and Price Dynamics," Economica, London School of Economics and Political Science, vol. 54(215), pages 299-313, August.
- Cumby, Robert E. & Van Wijnbergen, Sweder, 1989.
"Financial policy and speculative runs with a crawling peg: Argentina 1979-1981,"
Journal of International Economics,
Elsevier, vol. 27(1-2), pages 111-127, August.
- Robert E. Cumby & Sweder van Wijnbergen, 1987. "Finanial Policy and Speculative Runs with a Crawling Peg: Argentina 1979-1981," NBER Working Papers 2376, National Bureau of Economic Research, Inc.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Gupta, Kanhaya L., 1988. "Interest rate determination in a small open economy : Singapore," Economics Letters, Elsevier, vol. 27(3), pages 283-285.
- Sebastian Edwards & Mohsin S. Khan, 1985. "Interest Rate Determination in Developing Countries: A Conceptual Framework (DÃ©termination du taux d'intÃ©rÃªt dans les pays en dÃ©veloppement: cadre thÃ©orique) (DeterminaciÃ³n de los tipos de inter," IMF Staff Papers, Palgrave Macmillan, vol. 32(3), pages 377-403, September.
- Blanco, Herminio & Garber, Peter M, 1986. "Recurrent Devaluation and Speculative Attacks on the Mexican Peso," Journal of Political Economy, University of Chicago Press, vol. 94(1), pages 148-66, February.
- Godfrey, Leslie G, 1978. "Testing for Higher Order Serial Correlation in Regression Equations When the Regressors Include Lagged Dependent Variables," Econometrica, Econometric Society, vol. 46(6), pages 1303-10, November.
When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:2:y:1989:i:1:p:39-47. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.