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dc.contributor.authorHanson, Samuel Gregory
dc.contributor.authorStein, Jeremy C.
dc.date.accessioned2012-08-08T13:03:49Z
dc.date.issued2012-08-08
dc.identifier.citationHanson, Samuel G., and Jeremy C Stein. "Monetary Policy and Long-Term Real Rates." Harvard Business School Working Paper, No. 13-008, July 2012.en_US
dc.identifier.urihttp://nrs.harvard.edu/urn-3:HUL.InstRepos:9369408
dc.description.abstractChanges in monetary policy have surprisingly strong effects on forward real rates in the distant future. A 100 basis-point increase in the 2-year nominal yield on an FOMC announcement day is associated with a 42 basis-point increase in the 10-year forward real rate. This finding is at odds with standard macro models based on sticky nominal prices, which imply that monetary policy cannot move real rates over a horizon longer than that over which all prices in the economy can readjust. Rather, the responsiveness of long-term real rates to monetary shocks appears to reflect changes in term premia. One mechanism that may generate such variation in term premia is based on demand effects coming from “yield-oriented” investors. We find some evidence supportive of this channel.en_US
dc.language.isoen_USen_US
dash.licenseOAP
dc.titleMonetary Policy and Long-Term Real Ratesen_US
dc.typeResearch Paper or Reporten_US
dc.description.versionAuthor's Originalen_US
dc.relation.journalHarvard Business School working paper series # 13-008en_US
dash.depositing.authorHanson, Samuel Gregory
dc.date.available2012-08-08T13:03:49Z
dc.identifier.doi10.1016/j.jfineco.2014.11.001
dash.contributor.affiliatedHanson, Samuel


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