Monetary Policy and Long-term Interest Rates

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Monetary Policy and Long-term Interest Rates

Author Info

Shu Wu (Department of Economics, The University of Kansas)

Abstract

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.

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Publisher Info
Paper provided by University of Kansas, Department of Economics in its series WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS with number 200512.

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Length: 19 pages
Date of creation: Apr 2005
Date of revision: Apr 2005
Handle: RePEc:kan:wpaper:200512

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Find related papers by JEL classification:
E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Determination of Interest Rates; Term Structure of Interest Rates

This paper has been announced in the following NEP Reports:

NEP-ALL-2005-04-30 (All new papers)
NEP-CBA-2005-04-30 (Central Banking)
NEP-MAC-2005-04-30 (Macroeconomics)
NEP-MON-2005-04-30 (Monetary Economics)

References listed on IDEAS
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Other versions:
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Other versions:
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