1.

Record Nr.

UNINA9910964633003321

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

9786613827364

9781462332656

146233265X

9781452711805

1452711801

9781283514910

1283514915

9781451909067

1451909063

Edizione

[1st ed.]

Descrizione fisica

1 online resource (34 p.)

Collana

IMF Working Papers

Altri autori (Persone)

HaunerDavid

Soggetti

Interest rates

Fiscal policy

Banks and Banking

Debt Management

Debt

Debts, Public

Deflation

Finance

Fiscal Policy

Government debt management

Inflation

Interest Rates: Determination, Term Structure, and Effects

Long term interest rates

Macroeconomics

Price Level

Prices

Public finance & taxation

Public Finance

Real interest rates

Sovereign Debt

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.