GOVERNMENT BORROWING, INTEREST RATES, AND THE CROWDING OUT EFFECT IN AN OPEN ECONOMY
Bahram Adrangi
(Professor of Business Economics and Associate Professor of Economics, School of Business Administration, University of Portland, Portland, Oregon.)
Todd Easton
(Professor of Business Economics and Associate Professor of Economics, School of Business Administration, University of Portland, Portland, Oregon.)
450
Abstract
This research applies the loanable funds theory in an international framework to investigate government borrowing's effect on U.S. interest rates. The equations estimated offer little support for the hypothesis that government borrowing raises interest rates and no evidence that inflows of foreign capital offset the effect of government borrowing.
Citation
Adrangi, B. and Easton, T. (1993), "GOVERNMENT BORROWING, INTEREST RATES, AND THE CROWDING OUT EFFECT IN AN OPEN ECONOMY", Studies in Economics and Finance, Vol. 15 No. 1, pp. 3-28. https://doi.org/10.1108/eb028706
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited