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Real Interest Rates, Saving and Investment

Author

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  • Smith, J.C.

Abstract

This paper investigates the determinants of real interest rates at world and country level. The starting point is the idea that the real interest rates reflect the interaction of desired saving and planned investment, using the framework developed by Barro and Sala-i- Martin (1990) and Barro (1992).

Suggested Citation

  • Smith, J.C., 1996. "Real Interest Rates, Saving and Investment," The Warwick Economics Research Paper Series (TWERPS) 454, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:454
    as

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    File URL: https://warwick.ac.uk/fac/soc/economics/research/workingpapers/2008/sitwerp.pdf
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    References listed on IDEAS

    as
    1. Robert J. Barro & Xavier Sala-i-Martin, 1990. "World Real Interest Rates," NBER Chapters, in: NBER Macroeconomics Annual 1990, Volume 5, pages 15-74, National Bureau of Economic Research, Inc.
    2. Christiano, Lawrence J & Eichenbaum, Martin, 1992. "Liquidity Effects and the Monetary Transmission Mechanism," American Economic Review, American Economic Association, vol. 82(2), pages 346-353, May.
    3. Olivier Jean Blanchard & Stanley Fischer (ed.), 1990. "NBER Macroeconomics Annual 1990," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262521555, April.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Barry Eichengreen, 2015. "Wall of Worries: Reflections on the Secular Stagnation Debate," IMES Discussion Paper Series 15-E-05, Institute for Monetary and Economic Studies, Bank of Japan.

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    More about this item

    Keywords

    INTEREST RATE; SAVINGS; INVESTMENTS; ECONOMIC MODELS;
    All these keywords.

    JEL classification:

    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E40 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - General
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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