Expected fiscal policy and interest rates in open economy

摘要: This paper reconsiders the long term eect of …scal policy on interest rates using a real-time dataset macroeconomic and variables in panel 17 OECD countries over period 1989-2009. We show that, after controlling for cross sectional dependence Factor Augmented Panel, are mostly related to global factors. Among domestic variables, level expected public debt mantains positive correlation with rates, while among factors, aggregate monetary stance play quantitatively sizeable role. then analyze how impulses from in‡uence each country's rates. …nd that these eects modest large economies particularly strong characterized by low initial …nancial integration, leading way novel interpretation divergent behaviour recent crisis.