Citation

Discussion Paper Details

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Title: Understanding the High Interest Rates on Italian Government Securities

Author(s): Alberto Giovannini and Gustavo Piga

Publication Date: October 1992

Keyword(s): Exchange-rate Expectations, Italian Debt, Public Debt, Risk-Premium and Witholding Tax

Programme Area(s): International Macroeconomics

Abstract: This paper discusses several determinants of the differential between yields on Italian government securities and yields on foreign government securities. We concentrate on expectations of (at least partial) insolvency, tax factors and exchange rate expectations. The evidence suggests that most of the differential between the cost of Italian debt and the cost of foreign (for example, German) debt is due to exchange rate expectations.

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Bibliographic Reference

Giovannini, A and Piga, G. 1992. 'Understanding the High Interest Rates on Italian Government Securities'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=720