01715cas a2200253 a 4500 AALejournalIMF009828 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451869040 1018-5941 BD-DhAAL BD-DhAAL Aisen, Ari. Budget Deficits and Interest Rates : A Fresh Perspective / Ari Aisen, David Hauner. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We extend the literature on budget deficits and interest rates in three ways: we examine both advanced and emerging economies and for the first time a large emerging market panel; explore interactions to explain some of the heterogeneity in the literature; and apply system GMM. There is overall a highly significant positive effect of budget deficits on interest rates, but the effect depends on interaction terms and is only significant under one of several conditions: deficits are high, mostly domestically financed, or interact with high domestic debt; financial openness is low; interest rates are liberalized; or financial depth is low. Mode of access: Internet Hauner, David. IMF Working Papers; Working Paper ; No. 2008/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/042/001.2008.issue-042-en.xml IMF e-Library