TY  - JOUR
AU  - Hur, Seok-Kyun
TI  - Money Growth and Interest Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 11102
PY  - 2005
Y2  - February 2005
DO  - 10.3386/w11102
UR  - http://www.nber.org/papers/w11102
L1  - http://www.nber.org/papers/w11102.pdf
N1  - Author contact info:
Seok-Kyun Hur
Korea Development Institute
POB 113, Chongnyang Seoul
KOREA
Fax: 82-2-968-4090
E-Mail: shur@kdi.re.kr
M1  - published as Seok-Kyun Hur. "Money Growth and Interest Rates," in Takatoshi Ito and Andrew K. Rose, editors, "Monetary Policy with Very Low Inflation in the Pacific Rim" University of Chicago Press (2006)

AB  - Our paper explores a transmission mechanism of monetary policy through bond market. Based on the assumption of delayed responses of economic agents to monetary shocks, we derive a system of equations relating the term structure of interest rates with the past history of money growth rates and test the equations with the US data. Our results confirm that the higher ordered moments of money growth rate(converted from the past history of money growth rates) influence the yields of bonds with various maturities in different timing as well as in different magnitudes and monetary policy targeting a certain shape of the term structure of interest rates could be implemented with certain time lags due to path-dependency of interest rates.
ER  -