What Explains Real Interest Rate Differentials across European Countries?

Michele Limosani

STUDI ECONOMICI, 2000, vol. 2000/71, issue 71

Abstract: What Explains Real Interest Rate Differentials across European Countries? (by Michele Limosani) - ABSTRACT: We decompose European real interest rate differentials into three components, the covered interest parity condition, the risk premium and the ex-ante relative purchasing power parity condition, and analyse why real interest rates in Europe do not converge to a single rate. The empirical evidence suggests that the risk premium is the most important factor accounting for deviations from the real interest parity condition and that deviations from the purchasing power parity condition play only a marginal role. JEL Classification: E58

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.francoangeli.it/riviste/Scheda_Rivista. ... 152&Tipo=ArticoloPDF (text/html)
Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fan:steste:v:html10.3280/ste2000-071004

Ordering information: This journal article can be ordered from
http://www.francoang ... io.aspx?IDRivista=59

Access Statistics for this article

STUDI ECONOMICI is currently edited by FrancoAngeli

More articles in STUDI ECONOMICI from FrancoAngeli Editore
Bibliographic data for series maintained by Stefania Rosato ().