Understanding the High Interest Rates on Italian Government Securities

Alberto Giovannini and Gustavo Piga

No 720, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper discusses several determinants of the differential between yields on Italian government securities and yields on foreign government securities. We concentrate on expectations of (at least partial) insolvency, tax factors and exchange rate expectations. The evidence suggests that most of the differential between the cost of Italian debt and the cost of foreign (for example, German) debt is due to exchange rate expectations.

Keywords: Exchange-rate Expectations; Italian Debt; Public Debt; Risk-Premium; Witholding Tax (search for similar items in EconPapers)
JEL-codes: E42 E43 F34 H63 (search for similar items in EconPapers)
Date: 1992-10
References: Add references at CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=720 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

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:cpr:ceprdp:720

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=720

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().