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| Tito B.S. Moreira and Geraldo Silva Souza |
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| ''A Nominal Theory of the Nominal Rate of Interest and the Price Level: Some Empirical Evidence'' |
| ( 2009, Vol. 29 No.4 ) |
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| This paper aims to investigate the impact of the bond/money ratio on the nominal interest rate. The econometric model chosen fits a dynamic panel data for Canada, Japan and US over the period 1980-2006. We found empirical evidence that Ricardian Equivalence does not hold. The analysis indicates, for the three countries, that the bond/money ratio affects the nominal interest rate. |
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| Keywords: Government debt, Ricardian equivalence, bond/money ratio. |
JEL: H6 - National Budget, Deficit, and Debt: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data) |
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| Manuscript Received : Jul 08 2009 | | Manuscript Accepted : Dec 18 2009 |
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