approximation it would be reasonable to assume that an increase in the real 90-day interest rate of 100 basis points would have …

Using New Keynesian models, we compare Friedman’s k-percent money supply rule to optimal interest rate setting, with … respect to determinacy, stability under learning and optimality. We first review the recent literature. Open-loop interest … for calibrated models Friedman’s rule performs poorly compared to the optimal interest rate rule. …

The emergence of the New Consensus in monetary policy has been followed by a renewal of interest in central banks …’ operating procedures, and specifically in the role of open market operations. There is a general view that overnight interest … open market operations is only in the context of controlling overnight rates of interest. In spite of the emphasis on …

-factor model of the term structure results in the best forecast of long-term interest rates for the period between January 1975 and …

literature (CEE 1999). We find great interde-pendence between interest rate setting and stock prices. Stock prices immediately … shock in-creasing stock prices by one per cent leads to an increase in the interest rate of five basis points. Stock price …