Economics, Econometrics and Finance
4 years ago

Credit spreads and fiscal imbalances drive interest rates, impacting economy.

1 view
The Journal of Economic Asymmetries
Credit frictions, fiscal imbalances, monetary policy autonomy, and monetary policy rules
Farah Waheed, Abdul Rashid

Paper Summary

The study shows that credit spreads, fiscal imbalances, and monetary policy autonomy impact interest rates. Capital controls help stabilize domestic prices. Supply and credit spread shocks mainly affect output, inflation, and interest rates.

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