Using the Term Structure of Interest Rates for Monetary Policy

18 Pages Posted: 21 Nov 2012

See all articles by Marvin Goodfriend

Marvin Goodfriend

Carnegie Mellon University - David A. Tepper School of Business; National Bureau of Economic Research (NBER)

Date Written: 1998

Abstract

The term structure of interest rates serves both as a vital link in the transmission of monetary policy and as an indicator of inflation expectations. The term structure is used here in a new application to address the 'policy in the pipeline problem.' Likewise, a peso-problem interpretation involving inflation scares can resolve some anomalies in the term structure data. Nevertheless, pitfalls still remain in using the term structure for tactical purposes.

Suggested Citation

Goodfriend, Marvin, Using the Term Structure of Interest Rates for Monetary Policy (1998). FRB Richmond Economic Quarterly, vol. 84, no. 3, Summer 1998, pp. 13-30. Available at SSRN: https://ssrn.com/abstract=2126283

Marvin Goodfriend (Contact Author)

Carnegie Mellon University - David A. Tepper School of Business ( email )

5000 Forbes Avenue
Pittsburgh, PA 15213-3890
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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