منابع مشابه
Panel 2: Fed Policy and the Misallocation of Credit Natural Rates of Interest and Sustainable Growth
The evolution of macroeconomic theory and monetary policy has brought us to a point that calls for critical reflection. It is undoubtedly true that no newcomer to the field can even begin to understand the current state of macroeconomics and policy formulation without understanding just how, dating from the pre-Keynesian era, the profession has arrived at this state. High theory today takes the...
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The Federal Reserve adjusts the federal funds target rate discretely, causing discontinuity in short-term interest rates. Unlike Poisson jumps, these adjustments are well anticipated by the market. We propose a term structure model that incorporates an anticipated jump component with known arrival times but random jump size. We find that doing so improves the model performance in capturing the ...
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Changes in monetary policy are typically implemented gradually, an empirical observation known as interest-rate smoothing. This finding is a puzzle for most monetary models because they predict an immediate response of monetary policy to macroeconomic developments. We propose an explanation of optimal interest-rate smoothing by applying the recent lesson from the related literature on the monet...
متن کاملMoney and Interest Rates
This study describes and reconciles two common, seemingly contradictory views about a key monetary policy relationship: that between money and interest rates. Data since 1960 for about 40 countries support the Fisher equation view, that these variables are positively related. But studies taking expectations into account support the liquidity effect view, that they are negatively related. A simp...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2012
ISSN: 1556-5068
DOI: 10.2139/ssrn.2124039