• Media type: Report; E-Book
  • Title: Why Are Long Rates Sensitive to Monetary Policy?
  • Contributor: Ellingsen, Tore [Author]; Söderström, Ulf [Author]
  • Published: Stockholm: Sveriges Riksbank, 2004
  • Language: English
  • Keywords: Excess sensitivity ; Central bank private information ; E43 ; Term structure of interest rates ; Yield curve ; E52
  • Origination:
  • Footnote: Diese Datenquelle enthält auch Bestandsnachweise, die nicht zu einem Volltext führen.
  • Description: We use a quantitative model of the U.S. economy to analyze the response of long-term interest rates to monetary policy, and compare the model results with empirical evidence. We find that the strong and time-varying yield curve response to monetary policy innovations found in the data can be explained by the model. A key ingredient in explaining the yield curve response is central bank private information about the state of the economy or about its own target for inflation.
  • Access State: Open Access