Private savings and interest rate in Mexico: 1963-1991
DOI:
https://doi.org/10.24201/ee.v9i1.283Keywords:
interest rate, variables, Euler-Equation modelAbstract
The objective of this paper is to contribute to the discussion on the sensitivity of both savings and interest rate. The relation between these two variables is estimated empirically in the case of Mexico. An Euler-Equation mode l is applied. Consumer s facing liquidness restrictions are incorporated to the model, and estimations are made with both annual data and quarterly data.