Monetary Policy with Flexible Exchange Rates and Forward Interest Rates as Indicators
1993 (English)Report (Other academic)
In the enw situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates. One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short interest rates, monetary policy, inflation rates and currency depreciation rates. The forward rate curve separates market expectations for the short, medium and long term more easily than the standard yield curve. Monetary policy in France, Germany, Great Britain, Sweden and the United States is interpreted with the help of forward rates.
Place, publisher, year, edition, pages
Stockholm: IIES , 1993. , 43 p.
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 559
monetary policy indicators, term structure of interest rates, exchange rate policy
IdentifiersURN: urn:nbn:se:su:diva-41883OAI: oai:DiVA.org:su-41883DiVA: diva2:342780