Monetary Information and Interest Rates
Carl E. Walsh
University of California at Santa Cruz; CESifo (Center for Economic Studies and Ifo Institute)
NBER Working Paper No. w1589
A model of interest rate movements in response to new information on the money stock is developed.The model, which incorporates several earlier approaches as special cases, makes explicit the manner in which estimated interest rate responses to money surprises depend on the relative variances of nominal and real disturbances, as well as on the monetary authority's policy and the credibility of that policy.
Number of Pages in PDF File: 31
Date posted: June 18, 2004