Synopsis
How are interest rates really formed? A behavioral theory explains a continuous-time approach that ties liquidity, reserves, and decision making to how rates move.
This rigorous work frames interest-rate formation as a supply-and-demand process, but with a practical twist: it models how a market intermediary and liquidity pressures drive rate changes over time. It presents a tractable alternative to traditional equations, focusing on realistic dynamics and empirical testing rather than purely abstract solutions.
- A continuous-time framework that links the risk-free rate, an underlying rate, and liquidity in the banking system.
- How reserves, desired reserves, and money inventories shape the path of interest rates.
- An adjustable process that replaces a strict Walrasian auction with a practical intermediary that buys and sells for its own account.
- Empirical estimation that connects the theory to macroeconomic data and observable rate behavior.
Ideal for readers of macroeconomics, monetary theory, and those exploring system-dynamics approaches to finance.
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A Behavioral Theory of Interest Rate Formation (Classic Reprint)
Print on DemandSeller: Forgotten Books, London, United Kingdom
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Paperback. Condition: New. Print on Demand. This book breaks with tradition to unveil the psychological mechanisms underlying the pivotal force of interest rates on our economy. The author, an expert in system dynamics and behavioral economics, reveals the hidden workings of a dynamic market where liquidity pressures on intermediaries influence the setting of risk-free interest rates through an adjustment to an âunderlying interest rateââ" essentially the rate to which people have grown accustomed. Grounded in empirical research at both individual and macroeconomic levels, this book confirms the validity of the theory. It will fascinate economists, policymakers, and financial professionals seeking to truly grasp the drivers of this fundamental economic force. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item. Seller Inventory # 9781332252572_0
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A Behavioral Theory of Interest Rate Formation Classic Reprint
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781332252572
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A Behavioral Theory of Interest Rate Formation Classic Reprint
Seller: PBShop.store UK, Fairford, GLOS, United Kingdom
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PAP. Condition: New. New Book. Shipped from UK. Established seller since 2000. Seller Inventory # LW-9781332252572
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