NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

A Simple Test of the Effect of Interest Rate Defense

Allan Drazen, Stefan Hubrich

NBER Working Paper No. 12616
Issued in October 2006

---- Acknowledgements -----

Paper presented at the 18th Annual TRIO Conference, Tokyo, Japan, December 2005 and forthcoming in the Journal of the Japanese and International Economies. For useful comments, we wish to thank our discussants, Shin-ichi Fukuda and Shigenori Shiratsuka, as well as Takatoshi Ito, Andrew Rose, and other conference participants. Corresponding Author: Allan Drazen, University of Maryland, NBER and CEPR. Stefan Hubrich is currently employed as a quantitative analyst in the equity division of T.Rowe Price Associates, Inc., in Baltimore/USA. The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.

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