tailieunhanh - Determinants of lending interest rates and interest rate spreads

One final word of caution. It is true that imperfect asset substitutability does give the government or the central bank an additional policy tool. But there is a qualification: Goodhart’s Law will eventually apply to debt operations. 14 The central bank may virtually fix the yield of its target bond. But if central bank action is known to have concentrated on a particular maturity, then its information content is compromised. Investors may judge that such paper is overpriced relative to paper of other maturities, and therefore avoid buying it. In time, private sector contracts might avoid referencing an interest rate regarded. | Lrf 11 BANK OF GREECE EUROSYSTEM Special Conference Paper Determinants of lending interest rates and interest rate spreads Ljupka Georgievska Rilind Kabashi Nora Manova - Trajkovska Ana Mitreska Mihajlo Vaskov Discussion Heather Gibson FEBRUARY 2011 9 BANK OF GREECE Economic Research Department - Special Studies Division 21 E. Venizelos Avenue GR-102 50 Athens Tel 30210-320 3610 Fax 30210-320 2432 Printed in Athens Greece at the Bank of Greece Printing Works. All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. ISSN 1792-6564 Editorial On 19-21 November 2009 the Bank of Greece co-organised with the Bank of Albania the 3rd Annual South-Eastern European Economic European Research Workshop held at its premises in Athens. The 1st and 2nd workshops were organised by the Bank of Albania and took place in Tirana in 2007 and 2008 respectively. The main objectives of these workshops are to further economic research in South-Eastern Europe SEE and extend knowledge of the country-specific features of the economies in the region. Moreover the workshops enhance regional cooperation through the sharing of scientific knowledge and the provision of opportunities for cooperative research. The 2009 workshop placed a special emphasis on three important topics for central banking in transition and small open SEE economies financial and economic stability banking and finance internal and external vulnerabilities. Researchers from central banks participated presenting and discussing their work. The 4th Annual SEE Economic Research Workshop was organised by the Bank of Albania and took place on 18-19 November 2010 in Tirana. An emphasis was placed upon the lessons drawn from the global crisis and its effects on the SEE macroeconomic and financial sectors adjustment of internal and external imbalances and the new anchors for economic policy. The papers presented with their discussions at .