Fiscal Policy and Interest Rates--How Sustainable Is the New Economy?

Author/creator Kumar, Manmohan S. Author
Other author Hauner, David Author
Format Electronic
Publication InfoWashington : International Monetary Fund
Description42 p.
Supplemental ContentFull text available from Ebook Central - Academic Complete

Summary Annotation This paper explores the determinants of long-term government bond yields in the Group of Seven (G-7) economies and analyzes the factors that could explain the conundrum of very low rates in the face of a variety of adverse factors in recent years. In particular, the paper focuses on the deteriorating fiscal position in the G-7 economies and enquires which factors could have offset their impact on long-term interest rates, and how sustainable they are likely to be. a model of interest rate determination is elaborated and estimated for the G-7, with explicit emphasis on capital flows and public savings. the results suggest a high likelihood of a substantial impact of the weaker budgetary positions in the G-7 on global interest rates when the offsetting unprecedented capital flows slow down.
Access restrictionAvailable only to authorized users.
Technical detailsMode of access: World Wide Web
Genre/formElectronic books.
ISBN9781451909067
ISBN1451909063 (E-Book) Active Record
Stock number00013468