Les taux d'intèret en France. (Interest rates in France)

Abstract

As in most countries, the structure of interest rates in France is relatively complex, resulting from conditions in which the direct matching up is effected between the supply of and demand for capital by the various economic agents. However, the intervention of financial institutions as well as of the monetary authorities influence, both directly and indirectly, the way in which interest rates are determined. The present article provides a detailed analysis of interest rate formation in France. The author first examines the basic position and objectives of monetary and economic policy before considering in turn the interest rates on short term and long term markets. It is shown that while interest rates still play a part in adjusting demand to supply on the capital markets, this role is lo longer a dominant one. Moreover, there are still partitions which protect rates of interest whose artificial character impedes the easy and regular matching up of supply and demand as a whole.

JEL: E43, E52