Budget Deficits and Interest Rates : A Fresh Perspective /

We extend the literature on budget deficits and interest rates in three ways: we examine both advanced and emerging economies and for the first time a large emerging market panel; explore interactions to explain some of the heterogeneity in the literature; and apply system GMM. There is overall a hi...

Descripción completa

Detalles Bibliográficos
Autor principal: Aisen, Ari
Otros Autores: Hauner, David
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2008.
Colección:IMF Working Papers; Working Paper ; No. 2008/042
Acceso en línea:Full text available on IMF
Descripción
Sumario:We extend the literature on budget deficits and interest rates in three ways: we examine both advanced and emerging economies and for the first time a large emerging market panel; explore interactions to explain some of the heterogeneity in the literature; and apply system GMM. There is overall a highly significant positive effect of budget deficits on interest rates, but the effect depends on interaction terms and is only significant under one of several conditions: deficits are high, mostly domestically financed, or interact with high domestic debt; financial openness is low; interest rates are liberalized; or financial depth is low.
Notas:<strong>Off-Campus Access:</strong> No User ID or Password Required
<strong>On-Campus Access:</strong> No User ID or Password Required
Descripción Física:1 online resource (19 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acceso:Electronic access restricted to authorized BRAC University faculty, staff and students