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Title: |
Budget Deficits, Expected Inflation and
Short-term Real Interest Rates: Evidence for the U.S. |
| Author: |
Findlay, David
W. |
| Author
Affiliation: |
Collegeby
College |
| Source: |
International Economic Journal, Autumn 1990, v. 4, no. 3, pp. 41-53 |
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Publication Date: |
Autumn 1990 |
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Abstract: |
This paper examines a number of issues
concerning the determination of short-term real interest rates. We
include actual inflation and several measures of expected inflation in
order to determine whether empirical results are sensitive to the choice
of the inflation variable. The results strongly suggest that the
estimated coefficients are unaffected by the choice of the interest rate
variable and, implicitly, the inflation variable. Deficits are not found
to have a positive effect on all measures of the dependent variable,
while increases in the real money supply and the inflation variables
depress real interest rates. |
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