Thornton, Daniel L. - Federal Reserve Bank of St. Louis - 2012
despite a 150-basis-point increase in the federal funds rate as a “conundrum.” This paper shows that the connection between … the 10-year yield and the federal funds rate was severed in the late 1980s, well in advance of Greenspan’s observation … funds rate as an operating instrument to using it to implement monetary policy and presents evidence from a variety of …