Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059621 | Economics Letters | 2013 | 5 Pages |
Abstract
We challenge the view that the negative correlation between the Federal Funds and the Euler equation interest rate is linked to monetary policy. Using Monte Carlo experiments, we show that the negative correlation can be explained by risk premium disturbances.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Johannes Gareis, Eric Mayer,