Interest Rate Dynamics: An Overview of Mainstream and Keynesian Empirical Studies

This article critically reviews both mainstream and Keynesian empirical studies of interest rate dynamics. It assesses the key findings of a selected number of these studies and surveys the debates between the mainstream and Keynesian schools. It also explores the debates on interest rate dynamics within the Post-Keynesian school of thought. Lastly, the article identifies the critical questions that are relevant for future empirical research.