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Estimating the US trend short-term interest rate
Reserve Bank of Australia, Sydney NSW, Australia; Sveriges Riksbank, Stockholm, Sweden.
Örebro University, Örebro University School of Business. National Institute of Economic Research, Stockholm, Sweden.ORCID iD: 0000-0002-4840-7649
Örebro University, Örebro University School of Business.ORCID iD: 0000-0003-2587-8779
2023 (English)In: Finance Research Letters, ISSN 1544-6123, E-ISSN 1544-6131, Vol. 55, no Part A, article id 103913Article in journal (Refereed) Published
Abstract [en]

We estimate the trend short-term interest rate in the United States using an unobserved-components stochastic-volatility model with interest-rate and survey data from 1998Q2 to 2022Q4. Our results indicate that the trend short-term interest rate has drifted down during most of the sample and remains low in a historical perspective, despite the recent sharp increase in the short-term interest rate.

Place, publisher, year, edition, pages
Elsevier, 2023. Vol. 55, no Part A, article id 103913
Keywords [en]
Unobserved components model, Bayesian estimation
National Category
Economics
Identifiers
URN: urn:nbn:se:oru:diva-106468DOI: 10.1016/j.frl.2023.103913ISI: 001025027900001Scopus ID: 2-s2.0-85153077258OAI: oai:DiVA.org:oru-106468DiVA, id: diva2:1771990
Funder
The Jan Wallander and Tom Hedelius Foundation, B20–0020Available from: 2023-06-21 Created: 2023-06-21 Last updated: 2023-08-01Bibliographically approved

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Österholm, PärPoon, Aubrey

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