Search Results
Working Paper
The effect of changes in the federal funds rate target on market interest rates in the 1970s
The standard empirical test of whether the Federal Reserve can influence interest rates is to regress interest rates on current and past (actual or unexpected) values of money growth. This literature generally finds little support for the view that the Fed can influence interest rates, except perhaps through the positive impact on inflation expectations of increases in money growth.
Working Paper
Determinants of the spread between Treasury bill and private sector money market rates
The purpose of this paper is to explore the reasons underlying the variable and sometimes very large differentials between United States Treasury bill rates and private sector U.S. money market rates of comparable maturity.
Working Paper
An analysis of the determinants of the yields on individual municipal securities
This working paper is the final version of an unpublished paper originally presented at the 1981 meeting of the Western Finance Association. The paper was referenced frequently in an article by one of the authors in the May/June 1982 issue of the Federal Reserve Bank of Richmond Economic Review entitled "Determinants of Individual Tax-Exempt Bond Yields: A Survey of Evidence." ; This study presents the results of a comprehensive regression analysis of the determinates of tax-exempt municipal bond yields. A substantial literature on the factors influencing municipal yields has developed over ...
Working Paper
The risk-free U.S. bond rate : errors in construction and use in econometric work
Observed differentials among yield series for different types of long-term instruments--U.S. government bonds, municipal bonds, corporate bonds and residential mortgages--vary considerably over time.
Working Paper
The reaction of interest rates to unanticipated Federal Reserve actions and statements, 1977-1984: implications for the money announcement controversy
Considerable attention has been devoted to the reaction of interest rates, foreign exchange rates, and stock prices to unanticipated money growth revealed by the weekly M1 money stock announcement. Numerous articles have attempted to explain why nominal interest rates rise following the announcement of an M1 figure higher than expected and fall when an M1 figure is lower than expected. The major controversy in this literature is whether the observed reaction of interest rates reflects changes in the inflation expectations component or in the real rate component of the nominal rate.
Monograph
Instruments of the money market
Working Paper
The information content of discount rate announcements and their effect on market interest rates
This paper presents evidence that throughout the 1973-85 period the Federal Reserve systematically used certain types of discount rate announcements to signal changes in its policy instrument, the Federal funds rate. Market participants understood the signals contained in discount rate announcements and used them to revise their expectations of the future path of the funds rate. These revisions in funds rate expectations caused movements in Treasury bill rates. The paper also presents evidence that discount rate announcements signaling changes in the funds rate had a strong effect on bond ...
Monograph
Treasury bills
Journal Article
Money market mutual funds : a reaction to government regulations or a lasting financial innovation?
An abstract for this article is not available