Primary Dealers’ Waning Role in Treasury Auctions
Abstract: In this post, we quantify the macroeconomic effects of central bank announcements about future federal funds rates, or forward guidance. We estimate that a commitment to lowering future rates below market expectations can have fairly strong effects on real economic activity with only small effects on inflation.
JEL Classification: G1;
File(s): File format is text/html https://libertystreeteconomics.newyorkfed.org/2013/02/primary-dealers-waning-role-in-treasury-auctions.html
Provider: Federal Reserve Bank of New York
Part of Series: Liberty Street Economics
Publication Date: 2013-02-20