1 option
The Impact of Debt and Deficits on Long-Term Interest Rates in the US / Davide Furceri, Carlos Goncalves, Hongchi Li.
- Format:
- Book
- Government document
- Author/Creator:
- Furceri, Davide.
- Series:
- IMF Working Papers; Working Paper ; No. 2025/142
- IMF Working Papers
- Language:
- English
- Physical Description:
- 1 online resource (24 pages)
- Place of Publication:
- Washington, D.C. : International Monetary Fund, 2025.
- Summary:
- We present new evidence on the impact of fiscal variables on long-term interest rates and term premia in the United States. To alleviate endogeneity problems, we follow the seminal methodology by Laubach (2009) and resort to long-term projections of interest rates and fiscal variables. After incorporating an additional 20 years of data into our sample, the estimated effects of debt and deficits on interest rates show little change from Laubach’s findings. However, we show that the link between longterm rates and fiscal variables is not stable over time. It was close to zero during the years of relative fiscal prudence around the turn of the century and it has been increasing since fiscal positions have started to deteriorate markedly.
- Notes:
- Description based on print version record.
- ISBN:
- 979-82-290-1643-8
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.