Some Problems in the Explanation of Interest Rates
The article discusses the problems in the explanation of interest rates. Econometric analysis has to start from a theoretical scheme of the subject, its object indicates the determinants or data of the rates of interest and the functional relationship between these rates and their determinants. The purpose of the analysis may be formulated to explain the differences between, interest rates in different countries, various types of interest rates in the same country and the development in time of these interest rates. Rate of interest itself also exerts an important influence, particularly on that part of credit creation due to commercial banks, it was found that both the supply of deposits and the demand for short claims by commercial banks showed a dear dependence on the short-term interest rate.
|Keywords||Keynesian economics, consumption (economics) / mathematical models, econometric models, economic forecasting, economic indicators, interest rates, monetary policy, supply & demand|
Tinbergen, J.. (1947). Some Problems in the Explanation of Interest Rates. The Quarterly Journal of Economics. Retrieved from http://hdl.handle.net/1765/9755