The federal funds rate and the channels of monetary transmission

Article Abstract:

The federal funds rate can forecast movements of real macroeconomic variables. The rate appears to be more accurate than money and bill and bond rates in predicting real variables. This is due to the ability of the interest rate on federal funds to serve as an indicator of the Federal Reserve Board's monetary policies. Monetary policies, in turn, affect bank assets.

Forecasts and trends, Monetary policy, Federal funds market (United States)

---

The Effects of Inflation on Real Interest Rates

Article Abstract:

A model is developed to consider the liquidity of bonds as well as money when analyzing the effect of inflation on interest rates. Inflation in the long run will reduce the real rate on bonds but leave the marginal product of capital unaffected. This does not hold if the bonds liquidity arises from risk aversion rather than transaction costs.

Evaluation, Inflation (Finance), Inflation (Economics)

---

A Transactions-Based Model of the Monetary Transmission Mechanism

Article Abstract:

A transactions based model is developed to guage the effect of a change in money supply on the expenditure decisions of withdrawing agents in an open market. Increased money supply leads to a short-term reduction in interest rates and an increase in prices. In the long run prices adjust to money changes.

Decision-making, Decision making, Finance

Similar abstracts:

• Abstracts: The forecasting accuracy and determinants of football rankings. A survey of credit and bahvioural scoring: forecasting financial risk of lending to consumers
• Abstracts: Earnings management and the underperformance of seasoned equity offerings. Herding among security analysts
• Abstracts: The value of corporate voting rights and control: a cross-country analysis. Market reaction to public information: The atypical case of the Boston Celtics
• Abstracts: Decision making under uncertainty and the evolution of interdependent preferences
• Abstracts: The functional problems of the agro-industrial complex and ways of solving them. The new course of agrarian policy

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.