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dc.contributor.advisorChairperson, Graduate Committee: Douglas J. Young.en
dc.contributor.authorCalvert, Paul Wesley.en
dc.date.accessioned2013-06-25T18:39:22Z
dc.date.available2013-06-25T18:39:22Z
dc.date.issued1988en
dc.identifier.urihttps://scholarworks.montana.edu/xmlui/handle/1/1029
dc.description.abstractThis thesis addresses the effect of expected inflation on interest rates, and in so doing attempts to., replicate the findings of John Makin. In order to obtain an unbiased estimate of the effect of expected inflation on interest rates, other variables, such as inflation uncertainty, Federal budget deficits, the state of the business cycle and Federal Reserve policy, were included in the model. The model is a reduced form, modified IS-LM macroeconomic model with a money sub-model to separate expected from unexpected monetary policy. The regressions showed that a 1% change in expected inflation causes about a .915% change in short-term Treasury Bill yields; however, the results depend on the sample period and heteroscedasticity .correction employed. The point estimate of .915 for the expected inflation coefficient is similar to what many researchers have estimated. The coefficients for inflation uncertainty, the Federal budget deficits, and the business cycle were not significant. The attempt to replicate the results of John Makin was not successful. The R ² and coefficients for expected inflation and inflation uncertainty were different; however, the coefficients for unexpected monetary policy and the intercept term were quite similar.en
dc.language.isoengen
dc.publisherMontana State University - Bozeman, College of Agricultureen
dc.subject.lcshInterest rates Effect of inflation on.en
dc.subject.lcshInflation (Finance).en
dc.titleThe effect of inflation on interest rates
dc.typeThesis
dc.rights.holderCopyright Paul Wesley Calvert 1988en
thesis.catalog.ckey92814en
thesis.degree.committeemembersMembers, Graduate Committee: Myles Watts; Ronald N. Johnsonen
thesis.degree.departmentAgricultural Economics & Economics.en
thesis.degree.genreThesisen
thesis.degree.nameMSen
thesis.format.extentfirstpage1en
thesis.format.extentlastpage46en
mus.identifier.categoryLife Sciences & Earth Sciences
mus.identifier.categoryBusiness, Economics & Management
mus.relation.departmentAgricultural Economics & Economics.en_US
mus.relation.universityMontana State University - Bozemanen_US


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