Interest Rates and Output in the Long-Run
35 Pages Posted: 28 Apr 2005
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: 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
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