IDEAS home Printed from https://ideas.repec.org/p/esr/wpaper/wp048.html
   My bibliography  Save this paper

Expectations and Risk Premia in the Determination of Long-Term Interest Rates in Ireland

Author

Listed:
  • Patrick Honohan

    (Economic and Social Research Institute (ESRI))

  • Charles Conroy

Abstract

The role of expectations in influencing long-term interest rates in Ireland is examined. In the case of long-term securities, interest rate risk is added to exchange rate risk as a barrier to arbitrage between yields at home and abroad. Nevertheless, we find that fluctuations in world interest rates seem to have a strong influence on Irish long rates. Domestic influences are also undoubtedly important, but cannot easily and reliably be modeled in terms of either rational expectations of short rates or inflation, or by reference to quantifiable indicators of confidence such as current inflation differentials or government borrowing.

Suggested Citation

  • Patrick Honohan & Charles Conroy, 1994. "Expectations and Risk Premia in the Determination of Long-Term Interest Rates in Ireland," Papers WP048, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp048
    as

    Download full text from publisher

    File URL: https://www.esri.ie/pubs/WP048.pdf
    File Function: First version, 1994
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:wp048. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Burns (email available below). General contact details of provider: https://edirc.repec.org/data/esriiie.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.