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Title: |
The Impact of Budget Deficits on Real Interest Rates: An International
Empirical Investigation |
| Author: |
Giannaros, D.;
Kolluri, B. |
| Author
Affiliation: |
U Hartford |
| Source: |
International Economic Journal, Summer 1989, v. 3, no. 2, pp. 17-25 |
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Publication Date: |
Summer 1989 |
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Abstract: |
In this study, an attempt is made to
assess the empirical relationship between the short-term real rate of
interest and government budget deficit for five industrialized countries
during the period of 1965Q1-1985Q4. Contrary to the conclusions reported
earlier by some, the results do not support a statistically significant
relationship between budget deficit spending and the real interest rate.
Alternative estimations of the basic model with money supply and
government spending as other determinants of the real interest rate did
not alter the fundamental conclusion reached. |
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