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ongoing, inflation uncertainty seems to play a large role. Finally, while modern finance theory prices bonds and other assets …
Persistent link: https://www.econbiz.de/10008642882
Persistent link: https://www.econbiz.de/10014317573
This paper provides extensions to existing procedures for representing one-factor no-arbitrage models of the short rate in the form of a tree. It allows a wide range of drift functions for the short rate to be used in conjunction with a wide range of volatility assumptions. It shows that, if the...
Persistent link: https://www.econbiz.de/10011646425
Persistent link: https://www.econbiz.de/10011911532
From 2004 to 2006 the Federal Open Market Committee raised the target federal funds rate by 4.25 percentage points, yet long-maturity yields and forward rates fell. We consider several possible explanations for this conundrum of rising short-term and falling long-term interest rates. The most...
Persistent link: https://www.econbiz.de/10005021984
Persistent link: https://www.econbiz.de/10008926406
into inflation and real output growth, 80% of the demand side shocks are found to be absorbed by price increases. This … finding would cast doubt on the compatibility between inflation and growth targets outlined in the third five-year economic …’s chronic double-digit inflation rate would further accelerate. Hence, expansionary policies aiming at achieving the plan …
Persistent link: https://www.econbiz.de/10014618732
Independence (CBI), on the one hand, and the inflation and real GDP growth on the other. Using multivariate regression analysis for … regression, the negative relationship between CBI and inflation, and the lack of relationship between CBI and the variability of … whether they matter for inflation, for real GDP growth and for the sacrifice ratio. …
Persistent link: https://www.econbiz.de/10010883275
into inflation and real output growth, 80% of the demand side shocks are found to be absorbed by price increases. This … finding would cast doubt on the compatibility between inflation and growth targets outlined in the third five-year economic …'s chronic double-digit inflation rate would further accelerate. Hence, expansionary policies aiming at achieving the plan …
Persistent link: https://www.econbiz.de/10005579250
monitoring the relationships between the yield curve, output, and inflation. The framework predicts that steady-state inflation … correspond to the profile (that is, the timing and magnitude) of expected future inflation and output growth. These predicted … of inflation and output growth implied by the yield curve. It should also provide a basis for using the yield curve to …
Persistent link: https://www.econbiz.de/10005634989