How are the key Finnish market interest rates determined?

Christian C. Starck

No 11/1988, Bank of Finland Research Discussion Papers from Bank of Finland

Abstract: Finnish money markets have undergone profound changes in recent years. In particular, the transition to a more market oriented system has changed,the way domestic interest rates are formed. This paper presents and quantifies one way of describing the structure and main linkages of the current setting. Key elements of the model are the dependence of the domestic market interest rates on the foreign interest rate, an explicit formulation of the dependence of the domestic short-term market interest rate on purely domestic factors, and explicit considerations of various institutional features af the domestic money market. Empirical evidence on the formation of the domestic shor-term and long-term market interest rates as well as short-term and long-term lending rates is presented, and the results are well in accordance with the theoretical structure of the model.

Date: 1988
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/211514/1/bof-rdp1988-011.pdf (application/pdf)

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:zbw:bofrdp:rdp1988_011

Access Statistics for this paper

More papers in Bank of Finland Research Discussion Papers from Bank of Finland Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().