Skip to main content

The Theory of the Price of Securities and of the Interest Rates

  • Chapter
  • 88 Accesses

Abstract

Following the general approach of this book, we explain the price of securities (in the broad sense, including capital stock) by the actions of brokers at the exchange and the interest rates by decisions of banks concerning the conditions of their loans. As to the price of securities, we already considered the offer and demand of securities in case of a household in some detail (see section 1.25). This approach is quite general and can be extended to any individual or institution. Thus we do not repeat it here. But the fixing of rates by the brokers is only dealt with in a short digression (section 1.26 in) which covers only the 2-person case.

Keywords

  • Interest Rate
  • Monetary Policy
  • Discount Rate
  • Commercial Bank
  • Reserve Requirement

These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-540-24733-3_7
  • Chapter length: 13 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   109.00
Price excludes VAT (USA)
  • ISBN: 978-3-540-24733-3
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book
USD   149.99
Price excludes VAT (USA)
Hardcover Book
USD   159.99
Price excludes VAT (USA)

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Barro, Robert J.: Macroeconomics, 4th ed. New York etc. ( Wiley ), 1993

    Google Scholar 

  2. Barro, Robert J. and Grilli, Vittorio: European Macroeconomics, London (The McMillan Press), 1994

    Google Scholar 

  3. Beckmann, Martin J., Menges, Günter and Selten, Reinhard (eds.): Handbuch der Mathematischen Wirtschaftswissenschaften, Vol. I, Wirtschaftstheorie, Wiesbaden (Gabler), 1979

    Google Scholar 

  4. Burda, Michael and Wyplosz, Charles: Macroeconomics. A European Text, Oxford etc. (Oxford University Press), 1993

    Google Scholar 

  5. Cohen, Randolph, Gompers, Paul and Vuolteenaho, Tuomo: Who Underreacts to Cash-Flow News? Evidence from Trading between Individuals and Institutions,N.B.E.R. Working Paper No. 8793

    Google Scholar 

  6. Dornbusch, Rudiger and Fischer, Stanley: Macroeconomics, New York etc. (McGraw-Hill), 1978

    Google Scholar 

  7. Frisch, Helmut: Theories of Inflation, London, New York etc. (Cambridge University Press ), 1983

    Google Scholar 

  8. Gorman, Linda: Who Underreacts to Cash-Flow News?, The N.B.E.R. Digest, June 2002

    Google Scholar 

  9. Heimstädter, Ernst: Wirtschaftstheorie II, Makroökonomische Theorie, 3rd ed. München (Vahlen), 1986

    Google Scholar 

  10. Heimstädter, Ernst: Wirtschaftstheorie I, Mikroökonomische Theorie, 4th ed. München (Vahlen), 1991

    Google Scholar 

  11. Hildenbrand, Werner: Market Demand: Theory and Empirical Evidence, Princeton (Princeton University Press), 1994

    Google Scholar 

  12. Hildenbrand, Werner and Kneip, Alois: Aggregation under structural stability: the change in consumption of a heterogeneous population, Bonn Econ Discussion Papers 4 /2002, January 2002

    Google Scholar 

  13. Holtemöller, Oliver: Money and Prices: An I(2) Analysis for the Euro Area, Discussion Paper No. 12/2002 of SFB 373, Humboldt-Universität Berlin, January 2002

    Google Scholar 

  14. Holtemöller, Oliver: Money and Banks: Some Theory and Empirical Evidence for Germany, Discussion Paper No. 17/2002 of SFB 373, Humboldt-Universität Berlin, 2002

    Google Scholar 

  15. Krelle, Wilhelm: Preistheorie I, Tübingen (Mohr Siebeck), 2nd ed. 1976

    Google Scholar 

  16. Krelle, Wilhelm: Preistheorie II, Tübingen (Mohr Siebeck), 2nd ed. 1976

    Google Scholar 

  17. Mankiw, N. Gregory: Principles of Economics, Fort Worth, Philadelphia etc. (The Dryden Press), 1998

    Google Scholar 

  18. Neumann, Manfred: Theoretische Volkswirtschaftslehre I, München (Vahlen), 5th ed. 1996

    Google Scholar 

  19. Romer, David: Advanced Macroeconomics, New York etc. (McGraw-Hill), 1996

    Google Scholar 

  20. Rose, Manfred: Finanzwissenschaftliche Makrotheorie, München (Vahlen), 1980

    Google Scholar 

  21. Samuelson, Paul A.: Economics, 17th ed. (McGraw-Hill), 2000

    Google Scholar 

  22. Schweizer, Urs: Vertragstheorie, Tübingen (Mohr Siebeck), 1999

    Google Scholar 

  23. Tirole, Jean: The Theory of Industrial Organization, Cambridge/Mass. ( MIT Press ), 1988

    Google Scholar 

  24. Varian, Hal R.: Grundzüge der Mikroökonomik (Intermediate Microeconomics), 5th ed. München, Wien (Oldenbourg ), 2001

    Google Scholar 

  25. Wolfstetter, Elmar: Topics in Microeconomics, Cambridge (Cambridge University Press), 1999

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and Permissions

Copyright information

© 2003 Springer-Verlag Berlin · Heidelberg

About this chapter

Cite this chapter

Krelle, W.E. (2003). The Theory of the Price of Securities and of the Interest Rates. In: Economics and Ethics 1. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-24733-3_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-540-24733-3_7

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-53434-8

  • Online ISBN: 978-3-540-24733-3

  • eBook Packages: Springer Book Archive