Effects of explicit FOMC policy rate guidance on interest rate expectations

Richhild Moessner

Economics Letters, 2013, vol. 121, issue 2, 170-173

Abstract: We quantify the impact of explicit FOMC policy rate guidance announcements at the zero lower bound on Eurodollar interest rate futures. We find that they significantly reduced implied interest rates and led to a flattening of the yield curve.

Keywords: Monetary policy; Central bank communication; Policy rate guidance (search for similar items in EconPapers)
JEL-codes: E58 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (46)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:121:y:2013:i:2:p:170-173

DOI: 10.1016/j.econlet.2013.07.023

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