Deregulation of Swedish financial markets reshapes global interest rate dynamics.
The article discusses how changes in Swedish financial markets and monetary policy have impacted interest rates. It explores how international factors influence domestic interest rates and analyzes the term structure of interest rates. The researchers also examine the impact of discount window policies on interest rates and monetary control. Key findings include the importance of the foreign exchange risk premium in determining interest rates, the implications of a currency basket system on risk premium and interest rate dependence, and the role of interest rate expectations in shaping the term structure of interest rates in the Swedish money market.