What Drives the Global Interest Rate

Global Knowledge, Local Solutions: Interest Rate and Monetary Policy

Mr . Wicksell and the global economy : What drives real interest rates ? ∗

We use a Bayesian dynamic latent factor model to extract world, regional and country factors of real interest rate series for 22 OECD economies. We find that the world factor plays a privileged role in explaining the variance of real rates for most countries in the sample, and accounts for the steady decrease in interest rates in the last decades. Moreover, the relative contribution of the worl...

Investigating the Relationship between the Facility Interest Rate and the Bank Deposit Interest Rate in Iran

The facility interest rate is one of the most important macroeconomic variables. The bank facility interest rate is associated with other macro-economic variables, one of which is the bank deposit interest rate. Using the time series data of the 1973-2017 period and the simultaneous equation system, the researchers estimated four equations using the three-stage least squares method.The result o...

What Is An Interest Rate Swap Anyway?

An investment officer at a community bank recently told me that he kept hearing and reading about “swap spreads” and “the swaps curve” and really didn’t know exactly what those things were. He was right to ask since a great deal of financial analysis these days relies on the swaps market as a source of information about expectations for interest rates, credit risk and bond market behavior. I wa...

What Drives the Vacancy Rate for Information Technology Workers?