The purpose of this discussion paper is to consider consumption insurance and its various channels at the level of the individual and at the level of the economy as a whole in the context of the European Monetary Union.First we introduce a theoretical framework to derive implications of...

This paper investigates the measurement of anticipated interest rate policy and the effects of these expectations on the term structure of nominal interest rates.It is shown that, under the expectations hypothesis, the level of long-term interest rates depends on three factors: the level of the...