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The use of forward interest rates as a monetary policy indicator is demonstrated, using Sweden 1992-1994 as an example. The forward rates are interpreted as indicating market expectations of the time- path of future interest rates, future inflation rates, and future currency depreciation rates....
Persistent link: https://www.econbiz.de/10012783966
opposition to the Federal Reserve's easing, and those for the Riksbank's tightening. Although the Swedish economy subsequently … better. The U.S. economy meanwhile performed worse than expected because of factors other than monetary policy. Without the … summer of 2010, and subsequent adverse economic shocks contributed to weak performance of the U.S. economy. In contrast, the …
Persistent link: https://www.econbiz.de/10013110938
In the new situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates. One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short...
Persistent link: https://www.econbiz.de/10013214576