Biblioteca de la Universidad Complutense de Madrid

The symetry underlymg real interest rate behaviour and the limk to investment flows: an ex ante formal treatment.


Peláez Ruiz-Fornells, Alejandro Francisco (2009) The symetry underlymg real interest rate behaviour and the limk to investment flows: an ex ante formal treatment. [ Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales; nº 03, 2009, ISSN: 2255-5471 ]

Vista previa
Creative Commons License
Esta obra está bajo una licencia de Creative Commons: Reconocimiento - No comercial - Compartir igual.


URL Oficial:


From a purely speculative approach and under the usual assumptions, a wellknown symmetrical structure appears, connecting neoclassical and Keynesian views of the markets. This framework admits graphical and formal explanation.
In previous work, we addressed this topic reaching some conclusions. Now that the credit bust spreads worldwide, we focus on formal analysis leading to more advanced results linked to our previous perspective that seems to hold. Using an ex ante formal treatment, we conclude that when applied to explain real interest rate behaviour, this symmetrical look shows a countercyclical pattern of response for this variable in neoclassical approach, while being procyclical from Keynesian view. This implies either a magnifying or a stabilizing role for the real rate in each case and could affect the financial to real investment flows ratio and, as a result, aggregate capital stock composition. The trend this ratio could follow, though difficult to explain, is of great interest to help explain the behaviour of financial markets. This appears as a key feature to approach the focal points of the financial markets reform.

Tipo de documento:Documento de trabajo o Informe técnico
Palabras clave:Symmetry interest rate, Capital stock, Capital composition, Financial markets, Business cycle, Investment flows.
Materias:Ciencias Sociales > Economía > Teorías económicas
Título de serie o colección:Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales
Código ID:8671

Barro, Robert. J., and Xavier Sala-i-Martin. 1990. “World Real Interest Rates” NBER Working Paper (3317).

Cuthbertson, Keith. 1997. “Microfoundations and the Demand for Money”. The Economic Journal, 107 (443): 1186-1201.

Cuthbertson, Keith, and Mark P. Taylor. 1987. “The Demand for Money: A Dynamic Rational Expectations Model”. The Economic Journal, 97 (Supplement: Conference Papers): 5-76.

Edey, Malcolm, Michael Kennedy, and Adrian Orr. 1995. “Real Long-Term interest rates: The evidence from pooled-time series” OECD Economic Studies, 25: 75-107.

Fernández Díaz, Andrés. 1977. “Inflazione recessiva e sviluppo regionale”, Rassegna Economica, 3 (maggio-giungo): 645-671.

Fernández Díaz, Andrés. 1979. Política Económica Coyuntural. Madrid: Ediciones ICE.

Fisher, Irving. 1977. The Theory of Interest: as determined by impatience to spend income and opportunity to invest it. Philadelphia, Pennsylvania: Porcupine Press. (Orig. pub. New York: Macmillan, 1930).

Goldfeld, Stephen. 1973. “The Demand for Money Revisited”. Brookings Papers on Economic Activity, 3: 577-646.

Goldfeld, Stephen. 1976. “The Case of the Missing Money”. Brookings Papers on Economic Activity, 3: 683-739.

Mulligan, Casey B., and Xavier Sala-i-Martin. 2000. “Extensive Margins and the Demand for Money at Low Interest Rates”. Journal of Political Economy, 108(5): 961-991.

Peláez Ruiz-Fornells, Alejandro. 1995. “Una nota sobre la posible dinámica del tipo de interés real desde los enfoques Neoclásico y Keynesiano”. Información Comercial Española, ICE: Revista de Economía, 747 (Noviembre): 151-164.

Sargent, Thomas J. 1987. Macroeconomic Theory. Orlando, Florida: Academic Press Inc.

Depositado:16 Mar 2009 17:04
Última Modificación:04 Dic 2015 08:18

Sólo personal del repositorio: página de control del artículo