Real Interest Rates, Saving and Investment

Jennifer C. Smith

No 268703, Economic Research Papers from University of Warwick - Department of Economics

Abstract: This paper investigates the determinants of real interest rates at world and country level. The starting point is the idea that real interest rates re°ect the interaction of desired saving and planned investment, using the framework developed by Barro and Sala-i-Martin (1990) and Barro (1992). The paper updates previous results and extends the analysis to study long real interest rates. We analyse which factors have been responsible for real rate `regime shifts' during 1959 to 1992. We examine the determinants of interest rate di®erentials across ten major industrialised countries and provide estimates of the extent of capital market integration.

Keywords: Agricultural and Food Policy; Financial Economics (search for similar items in EconPapers)
Pages: 49
Date: 1996-03-03
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uwarer:268703

DOI: 10.22004/ag.econ.268703

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