Money Surprises and Short-Term Interest Rates: Reconciling ContradictoryFindings / John H. Makin.

Format:

Book

Author/Creator:

Makin, John H.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w0993.

NBER working paper series no. w0993

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Money Surprises and Short-Term Interest Rates

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1982.

Summary:

This note attempts to reconcile contradictory findings regarding the impact of money surprises on short term interest rates. Expectations effects regarding anticipated monetary policy and anticipated inflation suggest a positive relationship. Liquidity and output effects of monetary surprises suggest a negative relationship. It is shown that intra-day data and end-of-period data will capture expectations effects while period average data will capture liquidity/output effects. Seemingly contradictory results are reconciled by differences in dependent variables employed by various authors.

Notes:

Print version record

September 1982.