The Federal Government Deficit, Interest Rates, and Moderating Linkages
The relationship between federal deficits and interest rates was investigated for the United States using a loanable funds model incorporating the five major linkages that tend to moderate the relationship. Deficits and nominal interest rates were found to be positively related, with the five other relationships moderating the response. The Federal Reserve reaction was the strongest offsetting linkage over the 1974-1989 period, reducing the mean predicted interest rate level by about one-third. The capital inflow response was also quite important. The responses of credit demanders and savers to interest rate changes, and of savers discounting future taxes, were statistically significant, but small.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" 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.
Volume (Year): 48 (1995)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: +39 010 27041
Fax: +39 010 2704222
Web page: http://www.ge.camcom.it/IT/Tool/Modulistica
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ris:ecoint:0402. 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: (Angela Procopio)
If references are entirely missing, you can add them using this form.