Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/223221
Authors: 
Seoane, Hernán D.
Year of Publication: 
2020
Series/Report no.: 
EconPol Policy Report No. 22
Abstract: 
This paper reviews the main theories of interest rate determination and studies the dynamics of the real interest rate in US. Using cointegration techniques we search for equilibrium relationships between the real interest rate, monetary factors and real factors and we study how these relationships change with the policy regimes. We analyze monthly US data since early 20th century and find equilibrium relationships between a measure of the real interest rate, the policy interest rate and industrial production growth only after the end of the Bretton Woods. Moreover, we find that the equilibrium relationships between these variables are not invariant to changes in the monetary policy regime.
Document Type: 
Research Report

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