Browsing 01.NU Schools by Author "Rakshit, Atanu"

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Do markets care enough about deficit to raise future cost of capital? Non-linear deficitinterest rate relationship in the U.S. economy

Rakshit, Atanu (Social Science Research Network (SSRN), 2015-11-30)

This paper finds strong evidence of non-linear impact of long-horizon expected government deficits, measured by CBO projections, on expected future long-term interest rates for the US economy. The impact of a shock to ...