... either the bank rates or the
market rates, suggesting non-stationary interest rates. While the IPS test indicates stationarity of the
Boone indicator, the null hypothesis of non-stationarity ... the Boone indicator) onthe long-run bank interestrate pass-
through.
4.1. Estimation of the long-run relationship
If bank interest rates and their corresponding market rates are cointegrated, ...
3
The Lerner index derives from the monopolist's profit maximisation condition as price minus marginal cost,
divided by price. The monopolist maximises profits when the Lerner index is...
... current interestrate deci-
sion, the only strong requirement is that the conditioning assump-
tion for the future path of short-term policy rates is not too patently
out of line with what the decision ... problem with
this assumption, as also noted in Edey and Stone (2004).
On the other hand, the assumption of constant forward policy-
determined interest rates imposed a strong discipline onthe MPC
that ... decisions reasonably well (see especially Lildholdt and
Wetherilt 2004 for the United Kingdom). So this concern may be
Vol. 5 No. 2 TheInterestRate Conditioning Assumption 95
exercise. The...
... daily. There were two call-loan rates, therateon new loans (the
“new rate ) and therateon renewal of existing loans (the “renewal rate ). The renewal
rate was by far the more important. As Macaulay ... complete description of the development of the interest- rate
series in What Was theInterestRate Then? The objective of the project was to
generate interest- rate series for the United States ... What Was theInterest Rate
Then? So the component series pertain to the renewal rate.
15
Table 1
Compilations of London Market Discount Rateon Bills of Exchange, 1800-1923
Author
Description
Period
Frequency
Observation
Source
Palgrave
(1903,...
... lower
forward rate in the far month than in the nearby
month. If the difference in forward rates is large
enough to offset the time value associated with
the longer expiration, then the premium on the
longer ... options give investors the
chance to invest based upon their views on the
direction of interest rates.
What are interestrate options?
Interest Rate Options are options onthe spot
yield of U.S. ... -3.50
Maximum Risk: 1.50
The risk for this position is 1.50 x 100 or
$150.00. The breakeven on this position is
71.50. The breakeven is calculated by sub-
tracting the premium received, 3.50 from the
short...
... from the 60 kDa band was excised. The
sample was analysed using Q-TRAP MS bythe Protein
Analysis Laboratory at the Cancer Research UK London
Research Institute (London, UK).
Immunoprecipitation
Cells ... for the peptide synthesis,
Clive Lebozer for production of the rabbit antiserum,
and the Protein Analysis Laboratory at the Cancer
Research UK London Research Institute for perform-
ing the MS. ... fraction-
ation; however, the potential existence of nuclear
C-YES warrants further investigation.
The study then demonstrated that C-YES phospho-
rylates CDK4 on Y17 when expressed along with
CDK4...
... in the mononuclear SODs is not governed by
one or even two residues, but is most likely accomplished by
the concerted effects of a combination of key residues.
Further analysis of these and other ... [3,4]. Second, specificity of the reaction is
determinedbythe metal ion: the enzyme is active only with
the ÔcorrectÕ metal. Although, in the complete absence of the
ÔcorrectÕ metal, each type ... activity
by the Nitro Blue tetrazolium reaction as described by
Beauchamp and Fridovich [42].
Protein concentration
Estimation of the concentration of purified protein or in the
lysates was by the...
... among economists onthe impact of high government debt/GDP
ratios onthe level of long-term interest rates.
9
One dimension is that of the Ricardian versus
non-Ricardian perspective onthe private ... about pension provisions are to the long-term rate of interest.
This paper argues great caution is needed in drawing policy implications based onthe real
long-term interestrate currently prevailing ... describes the long-term interest
rate? This question was prompted bythe observation of a strong, apparently secular, decline
in the real long-term interestrate to a very low level. This decline...
... circumscribe theinterestrate rule so that the
limiting sum in the solution for the inflation rate in (15) is finite as we look
further and further ahead.
13
In the current context, this means that the monetary
authority ... dependence of theinterestrateon aggregate economic activity. Second,
under this policy specification, the monetary equilibrium condition the LM
schedule of the traditional IS- LM structure is unimportant ... demand) and the real interest rate, rather
than a connection between the level of output and the real interest rate. (That
is, the standard IS schedule will give the correct conclusions only if expected
future...
... November 2008
The Relativity Theory Revisited: Is Publishing
Interest Rate Forecasts Really so Valuable?
0LFKDï%U]R]D%U]H]LQD
Adam Kot
NATIONAL BANK OF POLAND
WORKING PAPER
No. 52
Contents
:25.,1*3$3(51R
3
Contents
List ... knows: –
)UDFWLRQŘe): IS equation,
Philips curve
Fraction e: projection
(additional data for
estimation)
IS equation
Philips curve policy rule
6LPXODWLRQVDQGUHVXOWV
National Bank of Poland
14
4
4
6LPXODWLRQVDQGUHVXOWV
4.1 ... 52
Contents
:25.,1*3$3(51R
3
Contents
List of tables and figures 4
Abstract 5
1Introduction 6
2The Model 9
3Expectations 11
4Simulations and results 14
6LPXODWLRQV 4
5HVXOWV 4
5Conclusions 17
References...
... and the component that is compensation for non-diversifiable
risk. Further, we also show that the impact of liberalization onthe systematic component of
30
an international setting the single-factor ... bill, the riskfree rate (RFREE), the
return onthe one-month Treasury bill, and the U.S. market portfolio (USMKT). Each instrument is lagged one period relative to the factor
returns. Q(x) isthe ... inter-bank rates when information on deposit rates is not available. These rates
are obtained from the International Financial Statistics (IFS) of the International Monetary Fund
(IMF).
Testing whether...
... inflation expectations are stable unless
they are disturbed by a shock to the economy. Under these
assumptions, even if the real interestrateis held only
marginally above the NRR, inflation will ... 3
the nominal interestrate implied bythe Taylor rule, and the
behaviour of the nominal interestrate over history.
If we plug in values for the nominal interest rate, inflation,
the inflation ... or
deflationary pressures requiring the central bank to
lean in either direction. In other words, the NRR is the
interestrate that is consistent with a situation in which
inflation and inflation expectations...