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Article: World real interest rates: an exploratory investigation.(Report)
- Article from:
- Journal of International Finance and Economics
- Article date:
- January 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 International Academy of Business and Economics. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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1. INTRODUCTION
The motivation for this paper is to look for questions that need to be more completely researched in the area of international financial economics. In particular, this paper explores the literature on the relationship of stock market returns and real interest rates. With the advent of new open macroeconomics literature several relationships have been theoretically modeled that discuss the relationship between real interest rates, the current account, stock market returns and other macro-variables (Obstfeld and Rogoff 1995). However, there has been very little empirical research to test these theoretical predictions in particular in the area of the ...