IDEAS home Printed from https://ideas.repec.org/a/oup/oxford/v15y1999i2p1-16.html
   My bibliography  Save this article

The Assessment: Real Interest Rates

Author

Listed:
  • Allsopp, Christopher
  • Glyn, Andrew

Abstract

The assessment attempts to provide a broad explanation of the post-war pattern of real interest rates, drawing on the theoretical and empirical papers in this issue of the Oxford Review. It is argued that the concept of the "neutral" rate of interest, at which the economy grows at its productive potential without changes in the inflation rate, provides a helpful framework for understanding these developments. The neutral rate provides a bridge between, on the one hand, the fundamental determinants of real returns, as suggested by models of economic growth and, on the other hand, the functioning of asset markets and the operating procedures of central banks. The change in policy stance towards tighter money at the beginning of the 1980s is seen as having had long-lasting effects, especially when account is taken of the fiscal stance. Copyright 1999 by Oxford University Press.

Suggested Citation

  • Allsopp, Christopher & Glyn, Andrew, 1999. "The Assessment: Real Interest Rates," Oxford Review of Economic Policy, Oxford University Press, vol. 15(2), pages 1-16, Summer.
  • Handle: RePEc:oup:oxford:v:15:y:1999:i:2:p:1-16
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    References listed on IDEAS

    as
    1. Gordon C. Rausser & Arthur A. Small, 2000. "Valuing Research Leads: Bioprospecting and the Conservation of Genetic Resources," Journal of Political Economy, University of Chicago Press, vol. 108(1), pages 173-206, February.
    2. World Bank, 2011. "The Changing Wealth of Nations : Measuring Sustainable Development in the New Millennium," World Bank Publications, The World Bank, number 2252.
    3. Salvatore Di Falco & Jean-Paul Chavas, 2007. "On Crop Biodiversity, Risk Exposure, and Food Security in the Highlands of Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(3), pages 599-611.
    4. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
    5. Fisher, Brendan & Christopher, Treg, 2007. "Poverty and biodiversity: Measuring the overlap of human poverty and the biodiversity hotspots," Ecological Economics, Elsevier, vol. 62(1), pages 93-101, April.
    6. Sedjo, Roger A, 1992. "Property Rights, Genetic Resources, and Biotechnological Change," Journal of Law and Economics, University of Chicago Press, vol. 35(1), pages 199-213, April.
    7. Alexander Pfaff & Juan Robalino, 2012. "Protecting forests, biodiversity, and the climate: predicting policy impact to improve policy choice," Oxford Review of Economic Policy, Oxford University Press, vol. 28(1), pages 164-179, Spring.
    8. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, Oxford University Press, vol. 110(2), pages 353-377.
    9. Amani Omer & Unai Pascual & Noel P. Russell, 2007. "Biodiversity Conservation and Productivity in Intensive Agricultural Systems," Journal of Agricultural Economics, Wiley Blackwell, vol. 58(2), pages 308-329, June.
    10. Simpson, R David & Sedjo, Roger A & Reid, John W, 1996. "Valuing Biodiversity for Use in Pharmaceutical Research," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 163-185, February.
    11. Dieter Helm & Cameron Hepburn, 2012. "The economic analysis of biodiversity: an assessment," Oxford Review of Economic Policy, Oxford University Press, vol. 28(1), pages 1-21, Spring.
    12. Susmita Dasgupta & Benoit Laplante & Hua Wang & David Wheeler, 2002. "Confronting the Environmental Kuznets Curve," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 147-168, Winter.
    13. Mintewab Bezabih, 2008. "Agrobiodiversity conservation under an imperfect seed system:the role of Community Seed Banking schemes," Agricultural Economics, International Association of Agricultural Economists, vol. 38(1), pages 77-87, January.
    14. Zwane, Alix Peterson, 2007. "Does poverty constrain deforestation? Econometric evidence from Peru," Journal of Development Economics, Elsevier, vol. 84(1), pages 330-349, September.
    15. Mills, Julianne H. & Waite, Thomas A., 2009. "Economic prosperity, biodiversity conservation, and the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 68(7), pages 2087-2095, May.
    16. Van Dusen, M. Eric & Taylor, J. Edward, 2005. "Missing markets and crop diversity: evidence from Mexico," Environment and Development Economics, Cambridge University Press, vol. 10(04), pages 513-531, August.
    17. Charles Perrings & George Halkos, 2012. "Who Cares about Biodiversity? Optimal Conservation and Transboundary Biodiversity Externalities," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 52(4), pages 585-608, August.
    18. Benin, S. & Smale, M. & Pender, J. & Gebremedhin, B. & Ehui, S., 2004. "The economic determinants of cereal crop diversity on farms in the Ethiopian highlands," Agricultural Economics, Blackwell, vol. 31(2-3), pages 197-208, December.
    19. Di Falco, Salvatore & Perrings, Charles, 2005. "Crop biodiversity, risk management and the implications of agricultural assistance," Ecological Economics, Elsevier, vol. 55(4), pages 459-466, December.
    20. Melinda Smale & Jason Hartell & Paul W. Heisey & Ben Senauer, 1998. "The Contribution of Genetic Resources and Diversity to Wheat Production in the Punjab of Pakistan," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 482-493.
    21. Salvatore Di Falco & Jean-Paul Chavas & Melinda Smale, 2007. "Farmer management of production risk on degraded lands: the role of wheat variety diversity in the Tigray region, Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 36(2), pages 147-156, March.
    22. Sims, Katharine R.E., 2010. "Conservation and development: Evidence from Thai protected areas," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 94-114, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ito, Hiro, 2003. "Was Japan’s Real Interest Rate Really Too High During the 1990s? The Role of the Zero Interest Rate Bound and Other Factors," Santa Cruz Department of Economics, Working Paper Series qt48k5q6vd, Department of Economics, UC Santa Cruz.
    2. Genevieve Verdier, 2005. "The (Much Understated) Quantitative Role of Capital Accumulation and Saving," Macroeconomics 0507015, EconWPA.
    3. Christian Upper & Andreas Worms, 2003. "Real long-term interest rates and monetary policy: a cross-country perspective," BIS Papers chapters,in: Bank for International Settlements (ed.), Monetary policy in a changing environment, volume 19, pages 234-257 Bank for International Settlements.
    4. Gavin Cameron & Chris Wallace, 2002. "Macroeconomic Performance in the Bretton Woods Era and After," Oxford Review of Economic Policy, Oxford University Press, vol. 18(4), pages 479-494.
    5. M S Mohanty & Michela Scatigna, 2003. "Countercyclical fiscal policy and central banks," BIS Papers chapters,in: Bank for International Settlements (ed.), Fiscal issues and central banking in emerging economies, volume 20, pages 38-70 Bank for International Settlements.
    6. Gerald Epstein, 2002. "Employment-Oriented Central Bank Policy in an Integrated World Economy: A Reform Proposal for South Africa," Working Papers wp39, Political Economy Research Institute, University of Massachusetts at Amherst.
    7. repec:spr:fininn:v:2:y:2016:i:1:d:10.1186_s40854-016-0028-7 is not listed on IDEAS
    8. Joanne Archibald & Leni Hunter, 2001. "What is the neutral real interest rate, and how can we use it?," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 64, September.
    9. Allsopp, Christopher & Vines, David, 2015. "Monetary and fiscal policy in the Great Moderation and the Great Recession," CEPR Discussion Papers 10894, C.E.P.R. Discussion Papers.
    10. Saba Mushtaq & Danish Ahmed Siddiqui, 2016. "Effect of interest rate on economic performance: evidence from Islamic and non-Islamic economies," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 2(1), pages 1-14, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxford:v:15:y:1999:i:2:p:1-16. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: https://academic.oup.com/oxrep .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.