Technically, three glazed model helps us understand the determinants of interest rates in general, but does not say anything about a particular interest rate. Three glass uncertainty model is useful in the first study of international macroeconomics, but is untenable, as we move to a more complete understanding of the interest rates. This technical note is a much more precise about the real and nominal interest rates, providing a more comprehensive IS / LM model, the driver of the overall change in interest rates, providing a model of supply and demand for bonds, which further enhances our understanding of interest rate movements, and the discussion of the yield curve that tells us about the relationship between similar bonds of various maturities. "Hide
by Francis Warnock 14 pages. Publication Date: March 20, 2006. Prod. #: UV0994-PDF-ENG