The convenience yield as epicentre of monetary policy implementation

The convenience yield as epicentre of monetary policy implementation

| convenience yield, federal funds rate

Let's not get carried away by the idea that central banks set overnight interest rates. Central banks exercise direct control over the e...

The fed funds rate was never the Fed's actual policy lever

The fed funds rate was never the Fed's actual policy lever

| convenience yield, federal funds rate, Federal Reserve, market monetarism, moneyness, Nick Rowe, nominal interest rates

The lever on which a central bank pushes or pulls in order to keep its target variable (say inflation) on track is commonly referred to as t...