Journal Article

Determinants of long-term interest rates: an empirical study of several industrial countries

Abstract: Real interest rates on long-term financial assets play a central role in linking financial markets to the economy at large. Over the last fifteen years, these rates have risen steadily in the United States and some key foreign countries. The authors consider long-term forces contributing to this risethe rate of return to capital, risk factors, and changes in financial structurealong with macroeconomic policies leading to short- and medium-term fluctuations in the rates.

Keywords: Interest rates; Monetary policy;

Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Quarterly Review

Publication Date: 1991

Volume: 16

Issue: Win

Pages: 12-28