Productivity and the term structure
Abstract: The recent record-setting economic expansion and the accompanying record-setting bull market in stocks are often attributed to Federal Reserve interest rate policy and increased productivity. But if interest rates behave differently when productivity changes, interest rate policy may need to change as well. This article examines how productivity changes affect the entire term structure-from short-term interest rates like the federal funds rate, to long-term rates like mortgages, car loans, and corporate bonds.
File(s): File format is text/html http://www.clevelandfed.org/Research/Review/2000/jgh36_4.pdf
Provider: Federal Reserve Bank of Cleveland
Part of Series: Economic Review
Publication Date: 2000
Issue: Q IV