Title: The Impact of the Federal Budget Deficit on the Nominal Interest Rate Yield on US Treasury Notes, 1979-2001
Abstract: This study empirically examines the impact of the federal government budget on the nominal interest rate yield on US Treasury notes over the 1979-2001 period. In a system that includes the monetary base, the civilian labor force unemployment rate, the ex ante real 52 week Treasury bill rate, and the percentage growth rate of the S&P 500 stock index, Error-Corrections Model (ECM) estimation finds that the total federal budget deficit acted to increase the nominal interest rate yield on seven year US Treasury notes over the study period.
Publication Year: 2003
Publication Date: 2003-09-08
Language: en
Type: preprint
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