search query: @author Haynes, S. E. / total: 4
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| Author: | Haynes, S. E. |
| Title: | Identification of interest rates and international capital flows. |
| Journal: | Review of Economics and Statistics
1988 : FEB, VOL. 70:1, p. 103-111 |
| Index terms: | CAPITAL MARKETS INTEREST RATES |
| Language: | eng |
| Abstract: | The conventional paradigm that capital movements respond to differences in interest rates between countries and simultaneously reduce interest rate differentials has been difficult to demonstrate empirically. It is stated than such a demonstration may be feasible if a simultaneous model is specified that describes the dynamics of adjustment and if a data interval is chosen that reveals the dynamics. Examination of U. S. and Canadian data from the 1960s supports the argument: with monthly observations, the paradigm is strongly supported by the data; with quarterly observations, capital flows and interest rates are not significantly related. |
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