Unanticipated Money and Interest Rates / V. Vance Roley, Carl E. Walsh.

Format:

Book

Author/Creator:

Roley, V. Vance.

Contributor:

National Bureau of Economic Research.

Walsh, Carl E.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1278.

NBER working paper series no. w1278

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1984.

Summary:

Evidence on the relationship between unanticipated money and interestrates has been provided by two types of studies. First, several researchers have investigated the relationship using quarterly data. Second, a number of researchers have examined the effect of money announcement surprises on interest rates. In both instances, the correlation between money surprises and interest rates has usually been found to be non-negative.This paper first provides an interpretation of the correlation between unanticipated money and interest rates in terms of Federal Reserve policy objectives and operating procedures. Then, the correlation of unanticipated money and both short- and long-term interest rates is examined over weekly intervals, combining several aspects of the previous quarterly and announcement studies. In addition, the distinction between unpredicted and unperceived money also is considered.

Notes:

Print version record

February 1984.