6533b851fe1ef96bd12aa0b0
RESEARCH PRODUCT
Interest rates, expectations and the credibility of the Bank of Spain
Javier QuesadaFrancisco José GoerlichJoaquín Maudossubject
Economics and EconometricsInflation targetingmedia_common.quotation_subjectMonetary policyMonetary economicsMonetary hegemonyForward guidanceInterest rateCredit channelCredibilityEconomicssense organsYield curveskin and connective tissue diseasesmedia_commondescription
The purpose of the paper is to pinpoint the date of the change of monetary policy regime which occurred in Spain during the year 1984, when it moved away from controlling monetary aggregates towards interest rate targeting. The most likely date for the change is estimated and, surprisingly, there is evidence that agents learned about the new intermediate target quite rapidly.A week after the change, the term structure of interest rates showed how market agents attributed much more informational content to interest rate changes than they had previously. Two types of transitions are tried: a one-step and a gradual logistic swithing function.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 1995-09-01 | Applied Economics |