EconPapers    
Economics at your fingertips  
 

A note on the notions of risk-premium and liquidity-premium in Hicks's and Keynes's analyses of the term structure of interest rates

Luca Fantacci, Maria Cristina Marcuzzo () and Eleonora Sanfilippo

The European Journal of the History of Economic Thought, 2014, vol. 21, issue 6, 1102-1108

Abstract: While in Hicks's analysis there is the idea of a yield curve normally upward sloping, Keynes does not appear to envisage a systematic positive spread between long-term and short-term interest rates. This is mainly due a difference in their notions of liquidity, and in particular to Keynes's disbelief in the possibility of quantifying the premium required to induce investors to hold long-term rather than short-term assets. It follows that Hicks's and Keynes's explanations of the term structure are neither identical nor can be assimilated to the notion of 'preferred habitat', as suggested in some literature.

Date: 2014
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/09672567.2014.972637 (text/html)
Access to full text is restricted to subscribers.

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:taf:eujhet:v:21:y:2014:i:6:p:1102-1108

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/REJH20

DOI: 10.1080/09672567.2014.972637

Access Statistics for this article

The European Journal of the History of Economic Thought is currently edited by José Luís Cardoso

More articles in The European Journal of the History of Economic Thought from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-08-23
Handle: RePEc:taf:eujhet:v:21:y:2014:i:6:p:1102-1108