TY  - JOUR
AU  - Barro,Robert J.
TI  - World Interest Rates and Investment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 3849
PY  - 1991
Y2  - September 1991
UR  - http://www.nber.org/papers/w3849
L1  - http://www.nber.org/papers/w3849.pdf
N1  - Author contact info:
Robert J. Barro
Department of Economics
Littauer Center 218
Harvard University
Cambridge, MA 02138
Tel: 617/495-3203
Fax: 617/496-8629
E-Mail: rbarro@harvard.edu
AB  - In a world of integrated capital markets, the price of credit - which I measure by short-term expected real interest rates - is determined to equate the world aggregate of investment demand to the world aggregate of desired national saving. I implement this approach empirically by approximating the world by aggregates for ten major developed countries. For the period since 1959, the common component of expected real interest rates for these countries relates especially to developments on world stock and oil markets and secondarily, to world monetary and fiscal policies.
ER  -