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Treasury Bill Rates in the 1970s and 1980s

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  • Hendershott, Patric H
  • Peek, Joe

Abstract

As is widely recognized, real interest rates in the early 1980s were at peaks not witnessed since the late 1920s. Less well perceived is the sharp decline in real interest rates in the middle 1980s to their average levels of the previous quarter century. This paper seeks to identify the underlying determinants of the major movements in real six-month Treasury bill rates. The primary innovation is the development of a new monetary policy proxy that explains much of the real rate movement in the 1980s. Copyright 1992 by Ohio State University Press.

Suggested Citation

  • Hendershott, Patric H & Peek, Joe, 1992. "Treasury Bill Rates in the 1970s and 1980s," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 24(2), pages 195-214, May.
  • Handle: RePEc:mcb:jmoncb:v:24:y:1992:i:2:p:195-214
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    References listed on IDEAS

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    1. Evans, Paul, 1985. "Do Large Deficits Produce High Interest Rates?," American Economic Review, American Economic Association, vol. 75(1), pages 68-87, March.
    2. Peek, Joe & Wilcox, James A, 1984. "The Degree of Fiscal Illusion in Interest Rates: Some Direct Estimates," American Economic Review, American Economic Association, vol. 74(5), pages 1061-1066, December.
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    6. Richard H. Clarida & Benjamin M. Friedman, 1983. "Why Have Short-Term Interest Rates Been So High?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 14(2), pages 553-586.
    7. Joel Slemrod, 1986. "Saving and the Fear of Nuclear War," Journal of Conflict Resolution, Peace Science Society (International), vol. 30(3), pages 403-419, September.
    8. Olivier J. Blanchard & Lawrence H. Summers, 1984. "Perspectives on High World Real Interest Rates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 15(2), pages 273-334.
    9. repec:mes:challe:v:29:y:1986:i:2:p:13-21 is not listed on IDEAS
    10. Robert E. Lipsey & Helen Stone Tice, 1989. "The Measurement of Saving, Investment, and Wealth," NBER Books, National Bureau of Economic Research, Inc, number lips89-1.
    11. Peek, Joe & Wilcox, James A, 1983. " The Postwar Stability of the Fisher Effect," Journal of Finance, American Finance Association, vol. 38(4), pages 1111-1124, September.
    12. Thomas D. Simpson, 1984. "Changes in the Financial System: Implication for Monetary Policy," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 15(1), pages 249-272.
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    16. Peek, Joe & A. Wilcox, James, 1986. "Tax rate effects on interest rates," Economics Letters, Elsevier, vol. 20(2), pages 183-186.
    17. Patric H. Hendershott & Joe Peek, 1989. "Aggregate U.S. Private Saving: Conceptual Measures," NBER Chapters,in: The Measurement of Saving, Investment, and Wealth, pages 185-226 National Bureau of Economic Research, Inc.
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    Cited by:

    1. James R. Follain, 1990. "Mortgage Choice†," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 18(2), pages 125-144.
    2. Ireland, Peter N., 2001. "Sticky-price models of the business cycle: Specification and stability," Journal of Monetary Economics, Elsevier, vol. 47(1), pages 3-18, February.

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