<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study aims to examine the determinants of the MIR interest rate in the Euro area for the period 2003Q1-2015Q3. By employing Fixed and Random Effects as econometric methodologies, I examine whether the MIR rate is affected by the following macroeconomic factors: unemployment rate, inflation rate, GDP growth, political stability index, and wages as percentage of GDP. All these factors have been found to be significant drivers of the MIR rate and thus, they have to be taken into consideration when designing macro-prudential policies. The findings in this paper provide alternative explanations for the empirical evidence concerning interest rate spreads behaviour.</p></abstract>

This study aims to examine the determinants of the MIR interest rate in the Euro area for the period 2003Q1-2015Q3. By employing Fixed and Random Effects as econometric methodologies, I examine whether the MIR rate is affected by the following macroeconomic factors: unemployment rate, inflation rate, GDP growth, political stability index, and wages as percentage of GDP. All these factors have been found to be significant drivers of the MIR rate and thus, they have to be taken into consideration when designing macro-prudential policies. The findings in this paper provide alternative explanations for the empirical evidence concerning interest rate spreads behaviour.

Macroeconomic determinants of MIR interest rate margin in the euro area

Athens University of Economics and Business

Journal of Central Banking Theory and Practice

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Macroeconomic determinants of MIR interest rate margin in the euro area"}

This study aims to examine the determinants of the MIR interest rate in the Euro area for the period 2003Q1-2015Q3. By employing Fixed and Random Effects as...

Macroeconomic determinants of MIR interest rate margin in the euro area

Published Online: Jan 26, 2021

Page range: 39 - 53

DOI: https://doi.org/10.2478/jcbtp-2021-0002

Keywords
MIR interest rate, Interest rate margin, euro area, European Central Bank

© 2021 Dimitrios Anastasiou, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Macroeconomic determinants of MIR interest rate margin in the euro area

Published Online: Jan 26, 2021

Page range: 39 - 53

DOI: https://doi.org/10.2478/jcbtp-2021-0002

KeywordsMIR interest rate, Interest rate margin, euro area, European Central Bank

© 2021 Dimitrios Anastasiou, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
MIR interest rate, Interest rate margin, euro area, European Central Bank