Fed: macro models ignored lower bound of yield curve
A study by San Francisco Federal Reserve constructs a micro-finance model to study the relationship between the term structure of interest rates and the economy using three different strands of interdisciplinary macro-finance.
The research proposes several modifications to the way bond yields are interpreted in the future.
In the aftermath of the crisis, extraordinary central bank policies have significantly changed the way bond yield movements are interpreted in macro-finance models. For
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