Goodhart, Charles (2015) The interest rate conditioning assumption. Financial Markets Group Discussion Papers (547). Financial Markets Group, The London School of Economics and Political Science, London, UK.
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Abstract
A central bank’s forecast must contain some assumption about the likely future path for its own policy-determined short-term interest rate. Most of those central banks who have publicly reported their procedures in this respect have assumed that interest rates would remain unchanged from their present level, e.g. in Sweden, in the USA (at least most of the time) (see, for Sweden, Berg, Jansson and Vredin, 2004; and Jansson and Vredin, 2003; and for the USA, Boivin, 2004; Reifschneider, Stockton and Wilcox, 1997; and Romer and Romer, 2004). The UK was amongst this group from the first Inflation Report, at the end of 1992, until May 2004; then in August 2004 it shifted to the use of the forward short rates that are implied by the money market yield curve.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://fmg.lse.ac.uk |
| Additional Information: | © 2015 The Author |
| Divisions: | Financial Markets Group |
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HG Finance |
| JEL classification: | G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation |
| Date Deposited: | 30 Jul 2009 10:53 |
| Last Modified: | 15 Sep 2023 23:01 |
| URI: | http://eprints.lse.ac.uk/id/eprint/24666 |
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