Journal Article

Interest rate expectations and the slope of the money market yield curve

Abstract: An examination of the relationship between yield and maturity in the money market. The expectations theory suggests that the yield curve should be a good predictor of future spot interest rates. A substantial body of research in recent years has tested this implication of the theory and discussed possible reasons for the lack of support for the theory from these tests. This paper provides a review of this literature.

Keywords: Interest rates;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Review

Publication Date: 1990

Volume: 76

Issue: Sep

Pages: 3-26