Monetary effects on the real interest rate in an open economy: evidence from the Argentine indexed bond market

1989 ◽  
Vol 8 (2) ◽  
pp. 201-217 ◽  
Author(s):  
John F. Boschen ◽  
John L. Newman
Keyword(s):  
Interest Rate ◽  
Open Economy ◽  
Real Interest Rate ◽  
Bond Market ◽  
The Real

scholarly journals Risk Matters: The Real Effects of Volatility Shocks

2011 ◽  
Vol 101 (6) ◽  
pp. 2530-2561 ◽  
Author(s):  
Jesús Fernández-Villaverde ◽  
Pablo Guerrón-Quintana ◽  
Juan F Rubio-Ramírez ◽  
Martin Uribe
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Open Economy ◽  
Emerging Economies ◽  
Real Interest Rate ◽  
Small Open Economy ◽  
Real Interest Rates ◽  
The Real ◽  
Interest Rate Volatility ◽  
Business Cycle Model

We show how changes in the volatility of the real interest rate at which small open emerging economies borrow have an important effect on variables like output, consumption, investment, and hours. We start by documenting the strong evidence of time-varying volatility in the real interest rates faced by four emerging economies: Argentina, Brazil, Ecuador, and Venezuela. We estimate a stochastic volatility process for real interest rates. Then, we feed this process in a standard small open economy business cycle model. We find that an increase in real interest rate volatility triggers a fall in output, consumption, investment, hours, and debt. (JEL E13, E20, E32, E43, F32, F43, 011)

scholarly journals An Analysis of the Real Interest Rate Under Regime Shifts

1996 ◽  
Vol 78 (1) ◽  
pp. 111 ◽  
Author(s):  
Rene Garcia ◽  
Pierre Perron
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Regime Shifts ◽  
The Real

scholarly journals PROMBLEATIC ASPECTS OF SOLVING QUESTIONS WHILE CONDUCTING ECONOMIC EXAMINATIONS OF DOCUMENTS ON FINANCIAL AND CREDIT TRANSACTIONS

2016 ◽  
Vol 15 ◽  
pp. 321-326
Author(s):  
P O. Ivakhnenko
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Total Cost ◽  
Detailed Consideration ◽  
The Real ◽  
Credit Agreement ◽  
Expert Practice

Based on expert practice, the article analyzes main questions that experts are asked to solve when forensic economic examinations are commissioned in order to study documents on financial and credit transactions. The article provides a detailed consideration of problems that are connected with determining the total cost of the credit and calculation of the real interest rate for the use of credit resources, as well as the methods to calculate and use the floating interest rate when the credit agreement is concluded. It analyzes the most important tasks that experts solve in the course of the studies on the abovementioned questions. The article provides normative acts that regulate the order for disclosing information on the total cost of credit resources when credit agreements are concluded, the order for the formation of the floating interest rate. It considers problematic aspects of conducting examinations of documents on financial and credit transactions and offers proposals on amending and updating the array of methods in this area of research.

scholarly journals The Interest Rate Effect on Private Saving: Alternative Perspectives

2019 ◽  
Vol 10 (01) ◽  
pp. 1950002 ◽  
Author(s):  
Joshua Aizenman ◽  
Yin-Wong Cheung ◽  
Hiro Ito
Keyword(s):  
Interest Rate ◽  
Real Interest Rate ◽  
Age Dependency ◽  
Output Volatility ◽  
The Real ◽  
Private Saving ◽  
Percentage Point Increase ◽  
Point Increase ◽  
Rate Environment ◽  
The Interest Rate

Lowering the policy interest rate could stimulate consumption and investment while discouraging people from saving. However, such a move may also prompt people to save more to compensate for the low rate of return. Using the data of 135 countries from 1995 to 2014, we show that a low interest rate environment can yield different effects on private saving under different economic environments. The real interest rate affects private saving negatively if output volatility, old-age dependency, or financial development is above a certain threshold. Depending on a country’s specific economic circumstances, these effects are significant for the economy — a four-percentage point decline in the real interest rate, which is approximately the same as one standard deviation for China, would lead to a 1.52 percentage point increase in the Chinese private saving rate. Further, when the real interest rate is below 1.1%, greater output volatility would lead to higher private saving in developing countries.

Sign in / Sign up

Export Citation Format

Share Document