IDEAS home Printed from https://ideas.repec.org/a/fip/fedcec/y2002ijan1.html
   My bibliography  Save this article

Why haven't long-term interest rates fallen?

Author

Abstract

In 2001, the Federal Reserve lowered the federal funds rate target more than it had in over 25 years, but long-term interest rates didn't budge. Has monetary policy become ineffective? Just the opposite, the authors argue. The stability of long-term rates shows that people don't expect inflation to rise. That confidence, especially in light of the dramatic shocks the economy experienced, attests to the success of the central bank's policies.

Suggested Citation

  • David E. Altig & Ed Nosal, 2002. "Why haven't long-term interest rates fallen?," Economic Commentary, Federal Reserve Bank of Cleveland, issue Jan.
    • Handle: RePEc:fip:fedcec:y:2002:i:jan1
    as

    Download full text from publisher

    File URL: https://fraser.stlouisfed.org/title/4515/item/627771
    File Function: Full Text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Interest rates; Federal funds rate;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedcec:y:2002:i:jan1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: 4D Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbclus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.