TY  - JOUR
AU  - Roley,V. Vance
AU  - Walsh,Carl E.
TI  - Unanticipated Money and Interest Rates
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 1278
PY  - 1984
Y2  - February 1984
UR  - http://www.nber.org/papers/w1278
L1  - http://www.nber.org/papers/w1278.pdf
N1  - Author contact info:
V. Vance Roley
Department of Finance/DJ-10
Graduate School of Business
University of Washington
Seattle, WA  98195
Tel: 206/545-7476
E-Mail: vroley@u.washington.edu

Carl Walsh
Department of Economics
E2 Building
University of California
Santa Cruz, CA   95064
Tel: 531-459-4082
E-Mail: walshc@ucsc.edu
AB  - Evidence on the relationship between unanticipated money and interestrates has been provided by two types of studies. First, several researchers have investigated the relationship using quarterly data. Second, a number of researchers have examined the effect of money announcement surprises on interest rates. In both instances, the correlation between money surprises and interest rates has usually been found to be non-negative.This paper first provides an interpretation of the correlation between unanticipated money and interest rates in terms of Federal Reserve policy objectives and operating procedures. Then, the correlation of unanticipated money and both short- and long-term interest rates is examined over weekly intervals, combining several aspects of the previous quarterly and announcement studies. In addition, the distinction between unpredicted and unperceived money also is considered.
ER  -