IDEAS home Printed from https://ideas.repec.org/p/fip/fedrwp/86-02.html
   My bibliography  Save this paper

The reaction of interest rates to unanticipated Federal Reserve actions and statements, 1977-1984: implications for the money announcement controversy

Author

Listed:
  • Timothy Q. Cook
  • Thomas K. Hahn

Abstract

Considerable attention has been devoted to the reaction of interest rates, foreign exchange rates, and stock prices to unanticipated money growth revealed by the weekly M1 money stock announcement. Numerous articles have attempted to explain why nominal interest rates rise following the announcement of an M1 figure higher than expected and fall when an M1 figure is lower than expected. The major controversy in this literature is whether the observed reaction of interest rates reflects changes in the inflation expectations component or in the real rate component of the nominal rate.

Suggested Citation

  • Timothy Q. Cook & Thomas K. Hahn, 1986. "The reaction of interest rates to unanticipated Federal Reserve actions and statements, 1977-1984: implications for the money announcement controversy," Working Paper 86-02, Federal Reserve Bank of Richmond.
    • Handle: RePEc:fip:fedrwp:86-02
    as

    Download full text from publisher

    File URL: http://www.richmondfed.org/publications/research/working_papers/1986/wp_86-2.cfm
    Download Restriction: no
    File URL: http://www.richmondfed.org/publications/research/working_papers/1986/pdf/wp86-2.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedrwp:86-02. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christian Pascasio (email available below). General contact details of provider: https://edirc.repec.org/data/frbrius.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.