Judson, Ruth; Schlusche, Bernd; Wong, Vivian - Federal Reserve Board (Board of Governors of the … - 2014
In this paper, we re-examine the relationship between money and interest rates with a focus on the past few years, when … and the opportunity cost of holding money--measured as the spread between the three-month Treasury bill yield and the … statistically unstable. In late 2008, the opportunity cost of holding money dropped precipitously and has remained at its zero lower …