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Longer-term perspectives on the yield curve and monetary policy
In the spring of 2004, there was widespread expectation in financial markets that the Federal Reserve would shortly begin the process of raising its federal funds rate target back toward a more normal level. Much of this concern was based on the sizable increases in long-term rates that occurred when the Federal Reserve tightened monetary policy in 1994-1995 and 1999-2000. In contrast to the conventional wisdom, however, longer-term rates actually declined as the funds rate target rose. This article provides a framework for understanding the relationship between monetary policy and the yield curve that can be used to analyze the behavior of long-term rates during periods of monetary policy tightening. The authors use the framework to examine two recent episodes of policy tightening, in 1999-2000 and 2004-2005. Their analysis reveals that the conundrum period is highly unusual, but it also suggests that the relationship between monetary policy and the yield curve is quite complex and highly variable over time..Printed journal
Ketersediaan
| Call Number | Location | Available |
|---|---|---|
| PSB lt.dasar - Pascasarjana | 1 |
| Penerbit | : Federal Reserve Bank of Kansas City |
|---|---|
| Edisi | - |
| Subjek | Monetary policy Economic theory Interest rates Securities Markets Yield studies Federal funds rate |
| ISBN/ISSN | 1612387 |
| Klasifikasi | NONE |
| Deskripsi Fisik | - |
| Info Detail Spesifik | ER9004 ; 2005 |
| Other Version/Related | Tidak tersedia versi lain |
| Lampiran Berkas | Tidak Ada Data |