… Other changes take the financial markets by surprise, and bond prices move substantially …
interest rate responses to monetary policy, focusing in particular on the movements at the long …

… variable rates and that is more sensitive to the short-term rate, … their debt despite its fixed-rate
longmaturity character.Similarly, … rates is compounded if policy also compresses long rates …

… Fed began raising short-term interest rates and set off the year’s … relationship between
monetary policy and long rates during the … in sensitive materials prices affected monetary policy …

… rate behavior. The second section uses the expectations theory of the term structure to show
how the impact of monetary policy on long-term rates … sensitivity” of long-term rates to policy …

… monetary policy and long-term interest rates. We do so by looking at monetary policy innovations
to the monetary … that short-term interest rates are responsive to monetary shocks for the …

… interest rates will have a larger impact on long-term interest rates, and in most macroeconomic
models—including the FRB/US model and our DSGE model—long-term interest rates are …

… a single instrument of monetary policy — over time horizons long enough to matter for … (or
inflation) as a consideration in a systematically responsive policy would be sufficient to …

… two samples are in the sensitivity of output to the long-run interest rate on the IS curve, , and
the slope of the Phillips curve, : from sample 1 to sample 2, increases from 0.50 to 0.66 while …

… two roles that long-term nominal interest rates can play in the conduct of monetary policy in
a … The first allows long-term rates to enter the reaction function of the monetary authority. The …

… are sensitive to very small changes in interest rates. It has … rates rise short-term rates rise
more than long-term rates, but the prices of short-term securities fall less than the prices of long-…