Interest Rates and Output in the Long-Run

35 Pages Posted: 28 Apr 2005

See all articles by Yunus Aksoy

Yunus Aksoy

Birkbeck University of London

Miguel A. Leon-Ledesma

University of Kent - Department of Economics

Date Written: January 2005

Abstract

In this paper we argue that both statistics and economic theory-based evidence largely indicate the absence of long run relationships between the real output and the most relevant monetary indicator for the U.K. and the U.S, short term interest rates. These findings are not only a full sample result, but also valid in most of the sub-samples throughout the second half of the 20th century and are robust to the inclusion of possible omitted real variables.

Keywords: information value, long term relationship, cointegration, bounds tests

JEL Classification: E3, E4, E5

Suggested Citation

Aksoy, Yunus and Leon-Ledesma, Miguel, Interest Rates and Output in the Long-Run (January 2005). Available at SSRN: https://ssrn.com/abstract=647946 or http://dx.doi.org/10.2139/ssrn.647946

Yunus Aksoy (Contact Author)

Birkbeck University of London ( email )

Malet Street
Room: 726
London WC1E 7HX
United Kingdom
+44 (0) 20 7631 6407 (Phone)
+44 (0) 20 7631 6416 (Fax)

HOME PAGE: http://sites.google.com/site/yaksoy2002/home

Miguel Leon-Ledesma

University of Kent - Department of Economics ( email )

Keynes College
Kent, CT2 7NP
United Kingdom
00 44 0 1227 823026 (Phone)
00 44 0 1227 827850 (Fax)

HOME PAGE: http://www.ukc.ac.uk/economics/mal/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
130
Abstract Views
1,404
Rank
395,220
PlumX Metrics