The Fisher equation predicts that nominal interest rates and inflation should move together one-for-one. Recently published work argues that both nominal interest rates and inflation are non-linear. The evidence in this paper suggests that nominal interest rates are well described as two-regime...

The effects of open market operations and long versus short bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return....

The purpose of this paper is to argue that the distinction between real and nominal interest rates is the most important concept taught in macroeconomics principle courses. By "important" I mean "useful for interpreting and evaluating media reporting of the macroeconomy". This presumes that a...

This paper considers some implications for macroeconomic policy in an open economy if-as appears highly probable-international flows of capital are now significantly sensitive to changes in income, and to expected changes in income, in different countries. This assumption is in contrast to that...

The effects of open market operations and long versus short bond financing on risk in financial markets in a stochastically growing economy are studied. An increase in short bonds, resulting from exchanging long bonds, increases the riskiness of long bonds and raises their real rate of return....

The paper examines international linkages between daily time series of US and Australian 3 month Treasury Bills and 10 year Government Bonds from 1987-95, paying particular attention to the effects of macroeconomic announcements in both countries. The 2 country's interest rate data are modelled...

The purpose of this paper is to argue that the distinction between real and nominal interest rates is the most important concept taught in macroeconomics principle courses. By "important" I mean "useful for interpreting and evaluating media reporting of the macroeconomy". This presumes that a...

We show how the use of panel data methods such as those proposed in single equations by Kao and Pedroni or in systems by Larsson and Lyhagen to investigate economic hypotheses such as purchading power pariety or the term structure of interest rates may be affected by the existence of cross-unit...