Also, the Austrian system distinguishes between two different expenses ceilings: a fixed nominal ceiling, expressed in euros, which applies to more than 75% of the expenditure and a variable ceiling
, which refers to the costs of the business cycle, expenses related to E.U.
Specific issues include the implicit rate of return on demand deposits, fixed and variable ceiling rates for rate-regulated monetary assets, and the market rate of return on savings bonds.
These fixed and variable ceiling rates are summarized in parts A and B, respectively, of Table 6.
Small-denomination time deposits were subject to either fixed or variable ceiling rates during various periods of our sample; the latter were tied to Treasury market interest rates.
With the introduction of money market certificates in June 1978, some small-denomination time deposits were subject to variable ceiling rates that were tied to market interest rates (part B, Table 6).(15) We constructed these variable ceiling rates for small-denomination time deposits from information contained in various issues of the Federal Reserve Board's Annual Statistical Digest covering 1970-82.12 (16)
16 The linkages between variable ceiling rates and auction-average Treasury rates are discussed in Mahoney (1987) and Annual Statistical Digest, editions for 1970-1979 and 1980, 1981, and 1982.