Backus, David K.; Wright, Jonathan H. - In: Brookings Papers on Economic Activity 38 (2007) 1, pp. 293-329
From 2004 to 2006 the Federal Open Market Committee raised the target federal funds rate by 4.25 percentage points, yet long-maturity yields and forward rates fell. We consider several possible explanations for this conundrum of rising short-term and falling long-term interest rates. The most...
