Monetary Policy, Interest Rate Rules, and the Term Structure of Interest Rates
Author | : Ralf Fendel |
Publisher | : Peter Lang Publishing |
Total Pages | : 216 |
Release | : 2007 |
ISBN-10 | : STANFORD:36105131649233 |
ISBN-13 | : |
Rating | : 4/5 (33 Downloads) |
Download or read book Monetary Policy, Interest Rate Rules, and the Term Structure of Interest Rates written by Ralf Fendel and published by Peter Lang Publishing. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: Interest rate rules play an important role in the empirical analysis of monetary policy as well as in modern monetary theory. Besides giving a comprehensive insight into this line of research the study incorporates the term structure of interest rates into interest rate rules. This is performed analytically as well as empirically. In doing so, state of the art techniques of modern finance for the analysis of the term structure of interest rates are introduced into the macroeconomic concept of interest rate rules. The study implies that from the theoretical perspective term structure effects are an important extension of interest rate rules. From an empirical perspective it shows that including term structure effects in interest rate reaction functions improves our understanding of the interest rate setting of the Deutsche Bundesbank and the European Central Bank.