For the derivation of the expected future inflation rates from the yield curve, is it really valid

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For the derivation of the expected future inflation rates from the yield curve, is it really valid to assume

(a) a constant real rate of interest,

(b) a constant liquidity premium per period? Cite some studies that have done so, and report on their findings.

What are the determinants of the real rate interest and the liquidity premium? Does the expected stance of monetary or fiscal policy affect these variables?

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Monetary Economics

ISBN: 9780415772099

2nd Edition

Authors: Jagdish Handa

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Question Posted: Nov 12, 2024 03:01 AM

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For the derivation of the expected future inflation rates from the yield curve, is it really valid

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Monetary Economics

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