Analysis of persistency of international real interest rates in the presence of structural break

This thesis proves that persistency of real interest rates is quite low if structural breaks in real interest rates series are taken into consideration. Excluding Thailand, for all the countries investigated the half life of a shock on the real interest rates is almost a quarter year. Existence of structural break changes of evidences about the persistency of real interest rates, the effects of these findings on the theoretical models should be investigated.Key Words:1.Structural Break2.Persistence of Reel Interest Rates