Government Purchases and Real Interest Rates
N. Gregory Mankiw ()
No 2009, NBER Working Papers from National Bureau of Economic Research, Inc
This paper examines the dynamic impact of government purchases in a simple general equilibrium model with both durable and non-durable consumer goods as well as productive capital. The model generates perhaps surprising results. In particular, increases in government purchases are shown to cause reductions in real interest rates. The model thus provides a possible explanation for the observed behavior of real interest rates around wars.
Note: EFG ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25) Track citations by RSS feed
Published as Mankiw, N. Gregory. "Government Purchases and Real Interest Rates." Journal of Political Economy, Vol. 95, No. 2, (April 1987), pp. 407-419.
Downloads: (external link)
Journal Article: Government Purchases and Real Interest Rates (1987)
Working Paper: Government Purchases and Real Interest Rates (1987)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:2009
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().