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dc.contributor.authorJ. Makin, Anthony
dc.contributor.editorMyung-gun Choo
dc.date.accessioned2017-05-03T12:19:21Z
dc.date.available2017-05-03T12:19:21Z
dc.date.issued2004
dc.date.modified2009-06-28T21:41:11Z
dc.identifier.issn1225651X
dc.identifier.urihttp://hdl.handle.net/10072/24462
dc.description.abstractThis paper proposes a new economy-wide framework for decomposing international interest differentials based on aggregate borrowing and lending behaviour in economies whose domestic capital markets are highly globally integrated. Using macroeconomic rather than microeconomic concepts, this alternative approach demonstrates how key inter-relationships involving relative inflation levels and exchange rate expectations govern "average" domestic and foreign interest differentials. It also contributes by identifying different kinds of risk premia that arise due to economy-wide factors such as the level of foreign debt and country and political factors. Unlike standard interest parity approaches, based simply on arbitrage of financial asset returns, it shows that changing exchange rate expectations influence international interest differentials through both excess domestic borrowing and foreign lending behaviour.
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.languageEnglish
dc.language.isoeng
dc.publisherCenter for International Economics, Sejong University
dc.publisher.placeSeoul, Korea
dc.publisher.urihttp://sejong.metapress.com/openurl.asp?genre=article&eissn=1976-5525&volume=19&issue=1&spage=192
dc.relation.ispartofpagefrom192
dc.relation.ispartofpageto203
dc.relation.ispartofissue1
dc.relation.ispartofjournalJournal of Economic Integration
dc.relation.ispartofvolume19
dc.subject.fieldofresearchApplied Economics
dc.subject.fieldofresearchcode1402
dc.titleDecomposing Interest Differentials: An International Borrowing and Lending Approach
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.date.issued2004
gro.hasfulltextNo Full Text
gro.griffith.authorMakin, Tony J.


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