Cracking the conundrum
By: David K. Backus, Jonathan H. Wright
Contributors: Wright, Jonathan H.; National Bureau of Economic Research
Series: NBER working paper series -- working paper 13419; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13419.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: [electronic resource] /
Description: "From 2004 to 2006, the FOMC raised the target federal funds rate by 4.25%, yet long-maturity yields and forward rates fell.  We consider several possible explanations for this "conundrum." The most likely, in our view, is a fall in the term premium, probably associated with some combination of diminished macroeconomic and financial market volatility, more predictable monetary policy, and the state of the business cycle"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 9/21/2007.

Includes bibliographical references.

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Mode of access: World Wide Web.