Term structure transmission of monetary policy

The sensitivity of bond rates to macro variables appears to vary both over time and over forecast horizons. The latter may be due to differences in forward rate term premiums and in bond trader perceptions of anticipated policy responses at different forecast horizons. Determinacy of policy transmission through bond rates requires a lower bound on the average responsiveness of term premiums and anticipated policy responses to inflation.

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Year of publication:	2005
Authors:	Kozicki, Sharon ; Tinsley, Peter
Institutions:	Federal Reserve Bank of Kansas City
Subject:	Monetary policy

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Extent:	application/pdf
Series:	Research Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number RWP 05-06
Source:	RePEc - Research Papers in Economics

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