Fundamental Disagreement About Monetary Policy and the Term Structure of Interest Rates

35 Pages Posted: 18 Aug 2020 Last revised: 22 Sep 2021

See all articles by Shuo Cao

Shuo Cao

Shenzhen Stock Exchange; City University of Hong Kong (CityU)

Richard K. Crump

Federal Reserve Banks - Federal Reserve Bank of New York

Emanuel Moench

Frankfurt School of Finance & Management

Stefano Eusepi

University of Texas at Austin

Multiple version iconThere are 2 versions of this paper

Date Written: August 2020

Abstract

investment performance eliminates the downward trend in the term premium.

Keywords: disagreement, heterogeneous beliefs, Noisy information, Speculation, Survey Forecasts, Term premium, yield curve

JEL Classification: D83, D84, E43, G10, G12

Suggested Citation

Cao, Shuo and Crump, Richard K. and Moench, Emanuel and Eusepi, Stefano, Fundamental Disagreement About Monetary Policy and the Term Structure of Interest Rates (August 2020). CEPR Discussion Paper No. DP15122, Available at SSRN: https://ssrn.com/abstract=3674898

Shuo Cao (Contact Author)

Shenzhen Stock Exchange ( email )

2012 Shennan Blvd., Futian District
Shenzhen
China

City University of Hong Kong (CityU) ( email )

83 Tat Chee Avenue
Kowloon
Hong Kong

Richard K. Crump

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Emanuel Moench

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

Stefano Eusepi

University of Texas at Austin ( email )

Texas
United States

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