Monetary Policy and Long-term Interest Rates
نویسنده
چکیده
This paper documents some new empirical results about the monetary policy and long-term interest rates in the United States. It shows that changes in the monetary policy stance are more predictable to the bond market in the 1990s than in the 1970s. This shift in the predictability of the monetary policy actions affects the policy’s impact on long-term interest rates as well as the forecasting power of the yield spread for the future changes in short-term interest rates. JEL classification: E52, E43
منابع مشابه
An Analysis of the Negative Interest Rate Policy and its Effects on the Efficiency of Monetary Policy in the Framework of the Money in the Utility Function Model
Today, the unconventional policy of negative interest rate is discussed in many Western societies and developed countries, and the implementation of this policy in the financial and banking system has brought growth and prosperity in many economies involved in the crisis. In fact, by applying a negative interest rate, the bank will be able to direct credit allocation to productive and priority ...
متن کاملThe Effects of Monetary and Fiscal Policy Shocks on the Industry Sector of Iran’s Economy: SVAR Approach over the Period 2004-2017
In comparison with other productive sectors of economy, the growth of the industry has become one of the most essential approaches to economic development. This study explores the effects of monetary & fiscal policy shocks on production, employment and wages in the industry sector of Iran’s economy over the period 2004 - 2017. In this research, using time series data and econometrics technique...
متن کاملLong-range dependence in Interest Rates and Monetary Policy
This paper studies the dynamics of Brazilian interest rates for short-term maturities. The paper employs developed techniques in the econophysics literature and tests for long-range dependence in the term structure of these interest rates for the last decade. Empirical results suggest that the degree of long-range dependence has changed over time due to changes in monetary policy, specially in ...
متن کاملThe Impact of Domestic and Foreign Monetary Policy on Iran\'s economy: Global Modeling
One of the striking features of the business cycles is the patterns of co-movement of output, inflation, interest rates, and real equity prices across countries. This paper empirically examines the effects of domestic and foreign monetary policies on Iranchr('39')s macroeconomic variables (including real production, inflation, short-term interest rate, and real exchange rate) using quarterly da...
متن کاملShould Monetary Policy Use Long-Term Rates?
This paper studies two roles that long-term nominal interest rates can play in the conduct of monetary policy in a New Keynesian model. The first allows long-term rates to enter the reaction function of the monetary authority. The second considers the possibility of using long-term rates as instruments of policy. It is shown that in both cases a unique rational expectations equilibrium exists. ...
متن کامل