Interest Rate Linkages and Capital Market Integration: Evidence from the Americas
Abstract
In this paper, we study the long-run co-movement among the real interest rates of the U.S., Canada, and a select group of Latin American countries to assess the extent of financial market integration between these countries during a period of high capital mobility. The findings of the study support a long-run relationship between the short-term U.S. real interest rate and those of the Latin American countries, while it fails to support such a relationship between the U.S. and Canadian real interest rates.
Discipline(s)
Finance and Financial Management
Recommended Citation
Bhalla, Bharat and Shetty, Anand, "Interest Rate Linkages and Capital Market Integration: Evidence from the Americas" (2006). CRIF Seminar series. Paper 6.
http://fordham.bepress.com/crif_seminar_series/6
