A Nominal Theory of the Nominal Rate of Interest and the Price Level: Some Empirical Evidence

This paper aims to investigate the impact of the bond/money ratio on the nominal interest rate. The econometric model chosen fits a dynamic panel data for Canada, Japan and US over the period 1980-2006. We found empirical evidence that Ricardian Equivalence does not hold. The analysis indicates, for the three countries, that the bond/money ratio affects the nominal interest rate.

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Year of publication:	2009
Authors:	Moreira, Tito B.S. ; Souza, Geraldo Silva
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 4, p. 3120-3125
Publisher:	AccessEcon
Subject:	Government debt \| Ricardian equivalence \| bond/money ratio

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	H6 - National Budget, Deficit, and Debt ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008562809