The Term Structure of Interest Rates in a Small Open Economy: A Stochastic Analysis |
| |
Authors: | Fisher Walter H. |
| |
Affiliation: | (1) Department of Economics and Finance, Institute for Advanced Studies, Stumpergasse 56, A-1060 Vienna, Austria |
| |
Abstract: | This article employs a rational expectations IS-LM model with price adjustment to study the effect of domestic monetary and fiscal policy and world interest rate disturbances on the real and nominal small open economy term structure of interest rates. The impact of both temporary and permanent shocks are investigated. Notable results include the fact that monetary expansions lead to positive yield curves, while the implications of fiscal expansions and increases in the world interest rate depend crucially on the duration of the shock. |
| |
Keywords: | open economy term structure |
本文献已被 SpringerLink 等数据库收录! |