What Explains Real Interest Rate Differentials across European Countries?

Journal title STUDI ECONOMICI
Author/s Michele Limosani
Publishing Year 1 Issue 2000/71
Language Italian Pages 16 P. File size 532 KB
DOI
DOI is like a bar code for intellectual property: to have more infomation click here

Below, you can see the article first page

If you want to buy this article in PDF format, you can do it, following the instructions to buy download credits

FrancoAngeli is member of Publishers International Linking Association, Inc (PILA), a not-for-profit association which run the CrossRef service enabling links to and from online scholarly content.

We decompose European real interest rate differentials into three components, the covered interest parity condition, the risk premium and the ex-ante relative purchasing power parity condition, and analyse why real interest rates in Europe do not converge to a single rate. The empirical evidence suggests that the risk premium is the most important factor accounting for deviations from the real interest parity condition and that deviations from the purchasing power parity condition play only a marginal role. JEL Classification: E58

Michele Limosani, What Explains Real Interest Rate Differentials across European Countries? in "STUDI ECONOMICI " 71/2000, pp , DOI: