CEU Electronic Theses and Dissertations, 2015
| Author | Korda, Patrik |
|---|---|
| Title | Inexorable: The drivers of long-term interest rates and the political solution for eliminating sovereign debt defaults |
| Summary | The purpose of this thesis is to explore the drivers behind long-term interest rates. This thesis aims to explain the evolution of long-term interest rates, which – upon closer examination – exhibit multi-decade oscillations. The thesis makes use of various statistical methods, including correlations, linear regressions, and time series analysis. The major finding of this thesis is that there is a significant risk of long-term interest rates rising in the future, which would entail sovereign debt defaults. This is due to three primary factors: the velocity of money, the aging of the population, and rising oil prices. This thesis proposes a solution to mitigate that risk in the form of GDP shares, known as trills. |
| Supervisor | Folsz, Attila |
| Department | Political Science MA |
| Full text | https://www.etd.ceu.edu/2015/korda_patrik.pdf |
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