Ellingsen, Tore; Soderstrom, Ulf - IGIER (Innocenzo Gasparini Institute for Economic … - 2004
We use a quantitative model of the U.S. economy to analyze the response of long-term interest rates to monetary policy, and compare the model results with empirical evidence. We ?nd that the strong and time-varying yield curve response to monetary policy innovations found in the data can be...