The Journal of Developing Areas, Vol. 51, No. 4 (Fall 2017), pp. 49-67 (19 pages) While the empirical investigation of monetary reaction function is not new, available literature is mainly for ...

This paper evaluates the bias of the least-squares-with-dummy-variables (LSDV) method in fiscal reaction function estimations. A growing number of studies estimate fiscal policy reaction ...

Forbes contributors publish independent expert analyses and insights. Macro strategy, with a fixed income and derivative bias. The Fed was dovish up to the June meeting. The Fed was dovish at the June ...

Following the second shallow inversion of the 2yr vs 10yr yield curve on Tuesday, 10yr yields have been surging higher while 2s recover. The curve is already back over 18bps and MBS are loving it (MBS ...

When Janet Yellen discusses the economy in New York today, the question the Federal Reserve chairwoman most needs to answer is this: has her reaction function changed? The term doesn’t come up much in ...

This paper estimates a policy rule that explains the sign and the magnitude of the Federal Reserve's (Fed's) discount rate changes. It sets out a two-sided Type II Tobit model and develops a procedure ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

All interest rate increases are not created equal. Interest rates can go up due to expectations of improving economic prospects. Alternatively, they can be pushed up by rising inflation expectations.

The balance of growth and inflationary effects from US tariffs is of huge importance for FX, as this will determine the Bank of Canada’s policy reaction and potentially widen the USD-CAD rate gap even ...

For all the time we spend pushing back on the notion that the Fed Funds Rate is a root cause for volatility in longer-term rates, that push-back always carries a notable caveat: Fed Funds Rate ...