Essays about: "Greaeme Cokayne"

Found 1 essay containing the words Greaeme Cokayne.

  1. 1. The Expectations Hypothesis of the Term Structure of Interest Rates with Mean-reverting Expectations

    University essay from Lunds universitet/Nationalekonomiska institutionen

    Author : Greaeme Cokayne; [2009]
    Keywords : expectations; monetary policy; mean reverting; interest rates; Economics; econometrics; economic theory; economic systems; economic policy; Nationalekonomi; ekonometri; ekonomisk teori; ekonomiska system; ekonomisk politik; Business and Economics;

    Abstract : As it is the main theoretical explanation for how short term interest rates affect long-term interest rates, the expectations hypothesis of the term structure of interest rates is closely linked to the effectiveness of monetary policy. By assuming expectations about short term interest rates are mean reverting, this paper shows that monetary policy is most effective when expectations only slowly mean revert. READ MORE