Many studies have reported on various empirical tests of the expectations theory of the term structure of interest rates (ET). Although a common perception seems to be that the ET is rejected by the empirical tests, the overall evidence is actually mixed between frequent support and occasional...

The "credit view" emphasizes the impact of monetary policy on the amount and conditions of credit supplied by the banking sector as a main transmission channel. A review of the literature shows that the view that banks are in some sense special is widely accepted. However, whether the bank...

A common perception in the literature seems to be that the expectations theory of the term structure of interest rates (ET) is rejected by the empirical tests. However, the overall evidence across countries and time periods is actually mixed between frequent support and occasional rejection of...

This paper re-examines the use of estimated Taylor rule equations as a standard long run description of Federal Reserve policy. The empirical results suggest that until 1979 Fed policy changed the real funds rate in response to the output gap, with no response to an inflation target. During the...