Estimating and Interpreting Forward Interest Rates : Sweden 1992-1994 /

The use of forward interest rates as a monetary policy indicator is demonstrated, using Sweden 1992-1994 as an example. The forward rates are interpreted as indicating market expectations of the time-path of future interest rates, future inflation rates, and future currency depreciation rates. They...

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Autor principal: Svensson, Lars
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 1994.
Col·lecció:IMF Working Papers; Working Paper ; No. 1994/114
Accés en línia:Full text available on IMF
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Sumari:The use of forward interest rates as a monetary policy indicator is demonstrated, using Sweden 1992-1994 as an example. The forward rates are interpreted as indicating market expectations of the time-path of future interest rates, future inflation rates, and future currency depreciation rates. They separate market expectations for the short-, medium-, and long-term more easily than the standard yield curve. Forward rates are estimated with an extended and more flexible version of Nelson and Siegel's functional form.
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Descripció física:1 online resource (76 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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