Interest Rates 3: Composition of Interest Rates
16 Pages Posted: 23 Dec 2014
Date Written: December 23, 2014
This is the third in a series of seven papers on interest rates and it covers the yield curve, the literature on the composition of interest rates, an alternative analysis of composition of interest rates, the literature on the risk-free rate, an alternative view of the risk-free rate, and an analysis of the relationship of interest rates. The seven papers cover: (1) what are interest rates?; (2) relationship of interest rates; (3) composition of interest rates; (4) interest rate discovery; (5) bank liquidity & interest rate discovery; (6) role of interest rates; (7) an optimal rate of interest: the natural rate.
Keywords: Interest rates, money market, monetary policy, money, financial markets
JEL Classification: E40, E43, E44, E50, E51, E52, E58
Suggested Citation: Suggested Citation