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Social and Behavioral Sciences Commons™
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Full-Text Articles in Social and Behavioral Sciences
Does Changes In Monetary Policy Rate In Nigeria Have Effect On The Interest Rates? Recent Evidence, Saidu D. Ahmed, Aliyu B. Saidu, Umar A. Zubair
Does Changes In Monetary Policy Rate In Nigeria Have Effect On The Interest Rates? Recent Evidence, Saidu D. Ahmed, Aliyu B. Saidu, Umar A. Zubair
Bullion
The objective of this study is to find out whether changes in Monetary Policy Rate have any impact on interest rates in Nigeria. The study adopted Multiple Linear Regression Analysis to examine the effectiveness of changes in Monetary Policy Rate on movement in short term and long term rates in Nigeria. The study concludes that the MPR influences the 91-Day Treasury Bills rate to the greatest extent followed by the Inter-Bank Call rate. The results obtained from this study can be used to gauge the effectiveness of MPR in an economy like Nigeria where financial infrastructure is not fully developed.
Income Inequality, Equities, Household Debt, And Interest Rates: Evidence From A Century Of Data, Edmond Berisha, John Meszaros, Eric Olson
Income Inequality, Equities, Household Debt, And Interest Rates: Evidence From A Century Of Data, Edmond Berisha, John Meszaros, Eric Olson
Department of Economics Faculty Scholarship and Creative Works
Using Philippon's (2015) recently published historical household debt data, this paper uses Diebold and Yilmaz's (2012) generalized variance decompositions and generalized impulse responses to understand the relationship between interest rates, the stock market, household debt, and the distribution of income in the U.S. The results indicate that increases in the stock market and household debt increase income inequality. Moreover, the relationship between the interest rate and income inequality is found to be negative and statistically significant. We interpret our results as suggesting that high income earners derive a larger portion of their income from interest rate sensitive assets.