Interest Rates 4: Interest Rate Discovery
25 Pages Posted: 23 Dec 2014
Date Written: December 23, 2014
Abstract
This is the fourth in a series of seven papers on interest rates and it covers the principle of interest rate discovery and security valuation, the micro structure of financial markets, the role of secondary markets, interest rate discovery in the debt and deposit markets, and the micro factors which impact on price discovery. 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