TAILIEUCHUNG - Real Interest Rate Persistence: Evidence and Implications

The potential impact of debt on inflation depends on the response of monetary policy. High government debt could well constrain the ability of the central banks to set the policy rate to control inflation. This is the “fiscal dominance” view. Heavily debted governments force the central bank to accept inflation in order to reduce the real value of their debt. Historically, inflation has helped governments to reduce their public debt burdens. In the case of the United Kingdom, the unexpectedly sharp rise in inflation in the late 1960s and early 1970s reduced debt/GDP ratios significantly. Most of the crises. | Real Interest Rate Persistence Evidence and Implications Christopher J. Neely and David E. Rapach The real interest rate plays a central role in many important financial and macroeconomic models including the consumption-based asset pricing model neoclassical growth model and models of the monetary transmission mechanism. The authors selectively survey the empirical literature that examines the time-series properties of real interest rates. A key stylized fact is that postwar real interest rates exhibit substantial persistence shown by extended periods when the real interest rate is substantially above or below the sample mean. The finding of persistence in real interest rates is pervasive appearing in a variety of guises in the literature. The authors discuss the implications of persistence for theoretical models illustrate existing findings with updated data and highlight areas for future research. JEL C22 E21 E44 E52 E62 G12 Federal Reserve Bank of St. Louis Review November December 2008 90 6 pp. 609-41. The real interest rate an interest rate adjusted for either realized or expected inflation is the relative price of consuming now rather than As such it is a key variable in important theoretical models in finance and macroeconomics such as the consumption-based asset pricing model Lucas 1978 Breeden 1979 Hansen and Singleton 1982 1983 neoclassical growth model Cass 1965 Koopmans 1965 models of central bank policy Taylor 1993 and numerous models of the monetary transmission mechanism. The theoretical importance of the real interest rate has generated a sizable literature that exam 1 Heterogeneous agents face different real interest rates depending on horizon credit risk and other factors. And inflation rates are not unique of course. For ease of exposition this paper ignores such differences as being irrelevant to the economic inference. ines its long-run properties. This paper selectively reviews this literature highlights its central findings and .

• Ngân hàng - Tín dụng
• Cyclic Nucleotides
• Nucleotide
• Stress Responses
• Stress Induced
• Phytaspase Connection
• Membrane H+ ATPase