Abstract
dc:description.abstractThis thesis is a empirical test of the constancy of the real rate of interest in Germany over the period of 1970 to 2000. The methodology, based on Mishkin (1981), employs Ordinary Least Squares regressions to search for correlation in movements of real rates with lagged inflation, time trends, and ten other variables that commonly appear in the literature. Overall results reject the hypothesis of the constancy of the real rate. The Fisher Effect (Fisher, 1930), that movements in nominal interest rates reflect changes in expected inflation, is found to be only moderate for Germany. The monetary policy implication is that nominal interest rates contain little information about real interest rates and therefore on the tightness of monetary policy. Overall lack of significance in the test results may (as Mishkin found) be because there is so little variation in real rate movements.
Degree
thesis:*- Name thesis:degree_name
- Master of Arts
- Level thesis:degree_level
- masters
- Discipline thesis:degree_discipline
- Economics
- Department dc:contributor.department
- Economics
- Grantor dc:publisher
- Virginia Tech
- Year dc:date.issued
- 2002
Author and committee
dc:creator, dc:contributor.*- Author dc:creator
-
- Stubblebine, Michael A.
- Chair dc:contributor.committeechair
-
- Waud, Roger N.
- Committee members dc:contributor.committeemember
-
- Theroux, Richard
- Lutton, Thomas J.
Subjects
dc:subject × 2Rights
dc:rights- Statement dc:rights
-
- In Copyright
- Licence dc:rights.uri
Identifiers
dc:identifier.*- Dc Identifier Other
- etd-08312002-195807
- OAI identifier oai:identifier
- oai:vtechworks.lib.vt.edu:10919/34866