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1. 1. The Riksbank and International Interest Rate Dynamics

   University essay from Göteborgs universitet/Graduate School

   Author : Stefan Lindborg; [2019-10-21]
   Keywords : Interest rate; International Dynamics; Capital Flows; Small Open Econimics; DSGE; Riksbank; Sweden;

   Abstract : Based on the case of Sweden, this thesis studies the relationship between the nominal interest rate in a small open economy and the interest rates of the country's trading partners. Cross-country interest rate differentials affect domestic economic conditions through two channels; the exchange rate channel and via capital flows. READ MORE