Did Federal Funds Target Rate Changes Affect the Market Value of Insurance Companies?
نویسندگان
چکیده
منابع مشابه
Open Market Operations and the Federal Funds Rate
It is commonly believed that the Fed’s ability to control the federal funds rate stems from its ability to alter the supply of liquidity in the overnight market through open market operations. This paper uses daily data compiled by the author from the records of the Trading Desk of the Federal Reserve Bank of New York over the period March 1, 1984, through December 31, 1996: He analyzes the Des...
متن کاملFederal Funds Rate Prediction
We examine the forecasting performance of a range of time-series models of the daily US effective federal funds (FF) rate recently proposed in the literature. We find that: (i) most of the models and predictor variables considered produce satisfactory oneday-ahead forecasts of the FF rate; (ii) the best forecasting model is a simple univariate model where the future FF rate is forecast using th...
متن کاملTests of the Market's Reaction to Federal Funds Rate Target Changes
For sometime now, the Fed has implemented monetary policy by making discrete adjustments to its target for the federal funds rate. Given that a change in the funds rate target is taken as a change in monetary policy, it is not surprising that the market reacts to actual and perceived changes in the Fed’s funds rate target, [e.g., Cook and Hahn (1989) and Thornton (1996)]. Several interesting hy...
متن کاملExpectations, Open Market Operations, and changes in the Federal Funds Rate
The process through which Federal Reserve decisions about monetary policy are transmitted to the federal funds market has changed significantly in recent years. In 1994 the Federal Open Market Committee (FOMC) began to issue a public statement whenever it increased or decreased its target for the federal funds rate. This target is now the focus of activities at the Trading Desk at the Federal R...
متن کاملStock Prices, Firm Size, and Changes in the Federal Funds Rate Target
The Fed targeted the federal funds rate during the period 1974-79; they returned to that procedure in the late 1980s and have maintained it since then. For both periods, we find that stock prices reacted significantly to unanticipated changes in the federal funds rate target, but not to anticipated ones. Consistent with the prediction of imperfect capital market theories, the estimated impact o...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.2179438