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We reexamine the expectations theory of the term structure focusing on the question how monetary policy actions indicated by changes in the very short rate affect long-term interest rates. Our main point is that the expectations hypothesis implies that very long rates should only react to...
Persistent link: https://www.econbiz.de/10009578577
to 1998 are used, that is, the period until the introduction of the Euro is considered. A vector error correction model …
Persistent link: https://www.econbiz.de/10009616780