Money Supply Announcements and the Market's Perception of Federal Reserve Policy
1990; Wiley; Volume: 22; Issue: 2 Linguagem: Inglês
10.2307/1992303
ISSN1538-4616
Autores Tópico(s)Fiscal Policy and Economic Growth
ResumoThis paper investigates the reason why innovations in money-supply announcements cause interest rates to change. The paper empirically discriminates between the liquidity premium and the expected inflation hypotheses by directly taking into account investors expectations regarding the Federal Reserve's monetary policy stance. The results support the liquidity premium hypothesis, and the model provides an explanation for the observed time variation in the response of interest rates to money announcement surprises. Copyright 1990 by Ohio State University Press.
Referência(s)