Including different interest rates with different, Ask an Expert

Economics

Including different interest rates with different maturities would complicate the models however it wouldn't buy you very much. Because interest rates with different maturities are highly correlated, they characteristically move in the same direction and direction of a variable is typically what we are interested in. If you like, think of ‘the interest rate' as the one-year interest rate on government securities.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9577513

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