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The response of short-term interest rates to weekly money announcements since the Federal Reserve's change in operating procedures on October 6, 1979, is examined in this paper. The results indicate that the response increased significantly since October 1979, and that it varies nonlinearly...
Persistent link: https://www.econbiz.de/10013211689
The response of short-term interest rates to weekly money announcements since the Federal Reserve's change in operating procedures on October 6, 1979, is examined in this paper. The results indicate that the response increased significantly since October 1979, and that it varies nonlinearly...
Persistent link: https://www.econbiz.de/10012478103
, the monetary response to inflation, the size of the news shocks, and the forward guidance horizon. Specifically, the …, less uncertainty about the economy or an expectation of a stronger response to inflation reduces the benefit of forward …
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supply shocks, we investigate the feasibility of making imprecise credible announcements concerning the rate of inflation …
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