The Term Structure of Interest Rates and the Effects of Macroeconomic Policy

August 1989
Journal of Money, Credit & Banking (Ohio State University Press);Aug89, Vol. 21 Issue 3, p321
Academic Journal
The article analyzes the effects of macroeconomic policy on the term structure of interest rates taking into account the related monetary policy, its term structure, and the growth rate of the economy. The effects of anticipated current monetary changes and their impacts on the anticipated components of the interest rates are tested. The comparison between the effects of temporary and permanent monetary expansions on the real and nominal interest rates is also discussed. The author tests the model and its relationship between short-term real and nominal interest rates.


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