Debt and Interest Rates: The U.S. and the Euro Area

Please use this identifier to cite or link to this item: http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17934

Title:	Debt and Interest Rates: The U.S. and the Euro Area
Keywords:	E43 F41 E58 ddc:330 interest rates inflation debt financial integration
Issue Date:	16-Oct-2013
Publisher:	Kiel Institute for the World Economy (IfW) Kiel
Description:	We find that real interest rates paid on government debt depend significantly upon current and expected future levels of debt, in Europe as in the US. But this result only emerges when we condition on foreign interest rates, illustrating financial international integration. The previously strong effect of debt on US interest rates has been diluted by the addition of 2004-2006 data to the sample, perhaps reflecting the effect of massive purchases of US securities by foreign central banks. Another finding is that the asymmetry in the effect of US interest rates on European interest rates has not disappeared with the coming of European Economic and Monetary Union in 1999, as one might have thought.
URI:	http://koha.mediu.edu.my:8181/xmlui/handle/10419/17934
Other Identifiers:	http://hdl.handle.net/10419/17934 ppn:558071775 RePEc:zbw:ifwedp:5525
Appears in Collections:	EconStor

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