Chilean paper analyses recent trends in long-term interest rates
Monetary policies are more interrelated with long-term bond premia, study finds
Monetary policies are becoming "more interrelated" through their impact on long-term bond premia across different countries, according to a working paper published yesterday by the Central Bank of Chile, and co-authored by its governor.
In Long-term interest rates in advanced economies: recent trends and implications for monetary policy in Chile, Elias Albagli and Rodrigo Vergara argue that expectations of future short-term rates, as well as the term premium required by investors for holding
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