Budget Deficits and the Term Structure of Interest Rates in Italy

Bradley T. Ewing; Mark A. Yanochik

doi:10.1080/135048599353636

Budget Deficits and the Term Structure of Interest Rates in Italy

Bradley T. Ewing
, Mark A. Yanochik

Economics

Georgia Southern University
Kennesaw State University

Research output: Contribution to journal › Article › peer-review

23 Scopus citations

Abstract

This paper tests the hypothesis that changes in the federal budget deficit impact the term structure of interest rates in Italy. The results suggest that budget deficits increase the yield spread between long term government bonds and the three month Treasury bill. The implication is that budget deficits may hinder long-term economic growth in Italy, via a crowding out effect, by increasing long-term interest rates relative to short-term interest rates.

Original language	American English
Journal	Applied Economics Letters
Volume	6
DOIs	https://doi.org/10.1080/135048599353636
State	Published - 1999

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

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International Business
Business

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Cite this

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Budget Deficits and the Term Structure of Interest Rates in Italy

Abstract

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