This paper interest rates （i.e., the recent macroeconomic presents an IS-MP model with the term structure of yield curve） and discusses some of its applications to activities and policy issues. Specifically, the mod...This paper interest rates （i.e., the recent macroeconomic presents an IS-MP model with the term structure of yield curve） and discusses some of its applications to activities and policy issues. Specifically, the model is employed to explain （1） why a steepening yield curve may signal the subsequent economic expansion, （2） why long-term zero interest rate policy （ZIRP） may not completely avoid recessions, but disables the yield curve from being inverted to signal the following economic recession, （3） how Operation Twist （OT） may help ease the recession, in particular, under ZIRP, and what limit it may face.展开更多
文摘This paper interest rates （i.e., the recent macroeconomic presents an IS-MP model with the term structure of yield curve） and discusses some of its applications to activities and policy issues. Specifically, the model is employed to explain （1） why a steepening yield curve may signal the subsequent economic expansion, （2） why long-term zero interest rate policy （ZIRP） may not completely avoid recessions, but disables the yield curve from being inverted to signal the following economic recession, （3） how Operation Twist （OT） may help ease the recession, in particular, under ZIRP, and what limit it may face.
