TY - JOUR
T1 - Prediction of the economic activity from the short and long-term interest rate differential
T2 - New evidences in Chile and the United States of America cases
AU - Cademartori, David
AU - Navia, Rodrigo
AU - Galea, Manuel
AU - Osorio, Felipe
N1 - Funding Information:
The authors acknowledge the partial financial support from Projects Fondecyt 1050843 and DI Pontificia Universidad Católica de Valparaíso, Chile.
PY - 2008/7
Y1 - 2008/7
N2 - The purpose of this work is to verify the stability of the relationship between real activity and interest rate spread. The test is based on Chen (1988) and Osorio and Galea (2006). The analysis is applied to Chile and the United States, from 1980 to 1999. In general, in both cases the relationship was statistically significant in early 80s, but a break point is found in both countries during that decades, suggesting that the relationship depends on the monetary rule follow by the Central Bank.
AB - The purpose of this work is to verify the stability of the relationship between real activity and interest rate spread. The test is based on Chen (1988) and Osorio and Galea (2006). The analysis is applied to Chile and the United States, from 1980 to 1999. In general, in both cases the relationship was statistically significant in early 80s, but a break point is found in both countries during that decades, suggesting that the relationship depends on the monetary rule follow by the Central Bank.
UR - http://www.scopus.com/inward/record.url?scp=47649117316&partnerID=8YFLogxK
U2 - 10.1080/13504850600748950
DO - 10.1080/13504850600748950
M3 - Article
AN - SCOPUS:47649117316
SN - 1350-4851
VL - 15
SP - 707
EP - 712
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 9
ER -