Article ID Journal Published Year Pages File Type
5061162 Economics Letters 2010 5 Pages PDF
Abstract

Monetary policy is typically formulated with a very short-term interest rate, while longer rates matter in the transmission mechanism. We show that financial market shocks impact less on the macroeconomy if policy is set with a longer rate.

Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Preview
Financial shocks and the maturity of the monetary policy rate
Authors
, ,