Ehrmann, Michael; Fratzscher, Marcel; Gürkaynak, Refet S. - 2007
since EMU,
particularly for Italy and Spain, which have seen their long-term interest rates become
much lower, much less … volatility of very far-ahead forward interest rates has decreased over time.
Intuitively, if long-run inflation expectations in … a country are well anchored, then its far-
ahead forward interest rates should be more stable than if those long …