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Interest, Inflation and the Aggregate Consumption Function
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1979 (English)Report (Other academic)
Abstract [en]

This paper reports on an empirical study of the effects of interest rates and inflation on aggregate consumption in the United States. Empirical evidence, based on quarterly U.S. data from the postwar period, is first presented in support of the hypothesis that the real rate of interest varies inversely with the rate of inflation, at least in the short run. Regression estimates of an aggregate consumption function for the United States, also based on quarterly data from the postwar period, are then presented. These estimates indicate that the propensity to consume varies inversely with interest rates and directly with the rate of inflation.

Place, publisher, year, edition, pages
Stockholm: IIES , 1979. , 50 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 117
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41402OAI: oai:DiVA.org:su-41402DiVA: diva2:329982
Available from: 2010-07-15 Created: 2010-07-14 Last updated: 2010-07-15Bibliographically approved

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CiteExportLink to record
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Citation style
  • apa
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Language
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Output format
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