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

Faure, Alexander Pierre, Interest Rates 3: Composition of Interest Rates (December 23, 2014). Available at SSRN: or

Alexander Pierre Faure (Contact Author)

Rhodes University ( email )

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