Monetary Policy and Long-Term Interest Rates: An Efficient Markets Approach
AbstractThis paper is an application of efficient markets theory to analyze empirically the relationship of money supply growth and long-term interest rates. This approach has the advantage over earlier research on this subject in that it imposes a theoretical structure on this relationship that allows easier interpretation of the empirical results as well as more powerful statistical tests. In the interest of ascertaining the robustness of the results, many different empirical tests are carried out in this paper, and they uniformly do not support the proposition that increases in the money supply are correlated with declines in long rates.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0517.
Date of creation: Jul 1980
Date of revision:
Publication status: published as Mishkin, Frederic S. "Monetary Policy and Long-Term Interest Rates: An Efficient Markets Approach." Journal of Monetary Economics, Vol. 7, No. 1, (January 1981), pp. 1-27.
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- Mishkin, Frederie S., 1981. "Monetary policy and long-term interest rates : An efficient markets approach," Journal of Monetary Economics, Elsevier, vol. 7(1), pages 29-55.
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