This paper relates Keynes's discussions of money, the state theory of money, financial markets, investors' expectations …, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Keynes … mainly through the short-term interest rate. Investors' psychology, herding behavior in financial markets, and uncertainty …

We analyze empirical links between the perceived tail-risk of inflation, the policy rate, longer-term interest rates … contemporaneously to domestic and foreign monetary-policy announcements, except for the equity tail risk to foreign policy; (ii) all …

inflation expectations and risk premia. This entails jointly pricing and decomposing nominal and real UK yields. We find …

, increasing purchases' predictability. Lower uncertainty about the expected size and duration of total purchases facilitated their …