Interest Rates, Money Supply Announcements, and Monetary Base Announcements / John Huizinga, Leonardo Leiderman.

Format:

Book

Author/Creator:

Huizinga, John.

Contributor:

National Bureau of Economic Research.

Leiderman, Leonardo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w1705.

NBER working paper series no. w1705

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1985.

Summary:

This paper presents a new set of empirical regularities on the link between interest rates, money supply announcements and monetary base announcements. Among the main findings reported are: (i) unexpected increases in the announced monetary base have a significantly positive effect on interest rates during the period from October 1979 to October 1982; (ii) although unexpected money supply and monetary base announcements have the same impact on interest rates, they have different implications for the future behavior of the money supply and monetary base; (iii) the significant response of longer-term interest rates to unexpected monetary announcements is reflecting a response of current and expected future short-term rates -- i.e.term-structure premia are not altered by these announcements.

Notes:

Print version record

September 1985.