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Author Hauner, David ♦ Kumar, Manmohan S. ♦ Hauner, Prepared David
Source CiteSeerX
Content type Text
File Format PDF
Language English
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Working Paper ♦ Explicit Emphasis ♦ Global Interest Rate ♦ Fiscal Position ♦ Interest Rate Determination ♦ Low Rate ♦ Capital Flow ♦ Fiscal Policy ♦ Long-term Interest Rate ♦ G-7 Economy ♦ High Likelihood ♦ Interest Rate ♦ Substantial Impact ♦ Imf Policy ♦ Recent Year ♦ Adverse Factor ♦ Long-term Government Bond Yield ♦ Public Saving ♦ Paper Describe Research ♦ Budgetary Position
Description This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. 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
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article
Publisher Institution IMF Working Paper No. 06-112, International Monetary Fund