The learning cost of interest rate reversals.
Many central banks in many time periods have sought to avoid interest rate reversals, but at present there is no good explanation of this phenomenon. Our analysis identifies a new learning cost associated with reversing the interest rate. In a standard monetary model with forward-looking expectation...
| Main Author: | |
|---|---|
| Format: | Journal article |
| Language: | English |
| Published: |
Elsevier
2006
|