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Interest Rate Dynamics: An Examination of Mainstream and Keynesian Empirical Studies

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Listed:
  • Tanweer Akram
  • Khawaja Mamun

Abstract

This paper critically reviews both mainstream and Keynesian empirical studies of interest rate dynamics. It assesses the key findings of a selected number of these studies, surveying the debates between the mainstream and the Keynesian schools. It also explores the debates on interest rate dynamics within the Post Keynesian school of thought. Lastly, the paper identifies the critical questions relevant for future empirical research.

Suggested Citation

  • Tanweer Akram & Khawaja Mamun, 2024. "Interest Rate Dynamics: An Examination of Mainstream and Keynesian Empirical Studies," Economics Working Paper Archive wp_1043, Levy Economics Institute.
    • Handle: RePEc:lev:wrkpap:wp_1043
    as

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    References listed on IDEAS

    as
    1. Jaramillo, Laura & Weber, Anke, 2013. "Bond yields in emerging economies: It matters what state you are in," Emerging Markets Review, Elsevier, vol. 17(C), pages 169-185.
    2. Olivier J. Blanchard, 1991. "Current and Anticipated Deficits, Interest Rates and Economic Activity," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 361-390, National Bureau of Economic Research, Inc.
    3. repec:oup:ecpoli:v:29:y:2014:i:77:p:5-44 is not listed on IDEAS
    4. Matteo Deleidi & Enrico Sergio Levrero, 2021. "Monetary policy and long‐term interest rates: Evidence from the U.S. economy," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 121-147, February.
    5. Waikei Raphael Lam & Kiichi Tokuoka, 2013. "Assessing The Risks To The Japanese Government Bond Market," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(01), pages 1-15.
    6. Cebula, Richard, 2014. "An Empirical Investigation into the Impact of U.S. Federal Government Budget Deficits on the Real Interest Rate Yield on Intermediate-term Treasury Debt Issues, 1972-2012," MPRA Paper 55269, University Library of Munich, Germany.
    7. Takeo Hoshi & Takatoshi Ito, 2014. "Defying gravity: can Japanese sovereign debt continue to increase without a crisis? [Fiscal discipline and the cost of public debt service: some estimates for OECD countries]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 29(77), pages 5-44.
    8. Hongkil Kim, 2021. "Sovereign currency and long-term interest rates," International Review of Applied Economics, Taylor & Francis Journals, vol. 35(3-4), pages 577-596, July.
    9. Tanweer Akram, 2022. "One-Factor Keynesian Models of the Long-Term Interest Rate," Journal of Economic Issues, Taylor & Francis Journals, vol. 56(2), pages 356-361, April.
    10. repec:bla:ecpoli:v:29:y:2014:i:77:p:5-44 is not listed on IDEAS
    11. Steven Cook, 2008. "Econometric analysis of interest rate pass-through," Applied Financial Economics Letters, Taylor & Francis Journals, vol. 4(4), pages 249-251.
    12. Richard J. Cebula, 2014. "An empirical investigation into the impact of US federal government budget deficits on the real interest rate yield on intermediate-term treasury issues, 1972-2012," Applied Economics, Taylor & Francis Journals, vol. 46(28), pages 3483-3493, October.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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