The Yield Curve Information under Unconventional Monetary Policies

  • Luis Ceballos Central Bank of Chile
  • Damian Romero Central Bank of Chile and Barcelona Graduate School of Economics

Abstract

This paper attempts to address the question of how unconventional monetary policies affected the market expectations regards the expected path of the monetary policy rate and economic growth in countries where some kind of unconventional monetary policies were applied. The approach used is to compare the implicit expectations in the yield curve with market surveys (for the expected path pf monetary policy rate) and econometric models (for economic growth) and evaluate the accuracy of each forecast at different horizons. We conclude that in the period where unconventional monetary policies were applied, the yield curve provided relevant additional information to forecast the monetary policy rate and economic growth, especially in developed economies.
Published
2015-10-24
How to Cite
Ceballos, L., & Romero, D. (2015). The Yield Curve Information under Unconventional Monetary Policies. Economic Analysis Review, 29(2), 4-18. Retrieved from https://www.rae-ear.org/index.php/rae/article/view/453
Section
Articles