1.

Record Nr.

UNINA9910788403403321

Autore

Kumar Manmohan

Titolo

Fiscal Policy and Interest Rates : : How Sustainable Is The “New Economy”? / / Manmohan Kumar, David Hauner

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

1-4623-3265-X

1-4527-1180-1

1-283-51491-5

1-4519-0906-3

9786613827364

Descrizione fisica

1 online resource (34 p.)

Collana

IMF Working Papers

Altri autori (Persone)

HaunerDavid

Soggetti

Interest rates

Fiscal policy

Banks and Banking

Inflation

Public Finance

Interest Rates: Determination, Term Structure, and Effects

Price Level

Deflation

Debt

Debt Management

Sovereign Debt

Fiscal Policy

Finance

Macroeconomics

Public finance & taxation

Long term interest rates

Real interest rates

Government debt management

Prices

Debts, Public

United States

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa



Livello bibliografico

Monografia

Note generali

"May 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. LOW GLOBAL INTEREST RATES: POSSIBLE EXPLANATIONS""; ""III. A MODEL OF INTEREST RATE DETERMINATION""; ""IV. EMPIRICAL EVIDENCE""; ""A. Data and Methodology""; ""B. Empirical Results""; ""C. A New Economy of Interest Rates?""; ""V. CONCLUSIONS AND POLICY IMPLICATIONS""; ""REFERENCES""

Sommario/riassunto

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.