Search Results
Showing results 1 to 1 of approximately 1.
(refine search)
Journal Article
Further Evidence on Greenspan’s Conundrum
During his February 2005 congressional testimony, Alan Greenspan identified what he termed a conundrum. Despite the fact that the Federal Open Market Committee (FOMC) had increased the federal funds rate 150 basis points since June 2004, the 10-year Treasury yield remained essentially unchanged. Greenspan considered several explanations for his observation but rejected each. Thornton (2018) showed that the relationship between the 10-year Treasury yield and the federal funds rate changed in the late 1980s, many years prior to Greenspan's observation. Moreover, he showed that the relationship ...