Monetary Policy and Long-term Interest Rates

Shu Wu
Additional contact information
Shu Wu: Department of Economics, The University of Kansas

No 200512, WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics

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.

Keywords: monetary policy; interest rates; predictability (search for similar items in EconPapers)
JEL-codes: E52 E43 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cba, nep-mac and nep-mon
Date: 2005-04, Revised 2005-04
View list of references

Downloads: (external link)
http://www.ku.edu/~bgju/2005Papers/200512.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:kan:wpaper:200512

Access Statistics for this paper

More papers in WORKING PAPERS SERIES IN THEORETICAL AND APPLIED ECONOMICS from University of Kansas, Department of Economics
Contact information at EDIRC.
Series data maintained by Ronald Caldwell ().