Credit Spreads and Monetary Policy
---- Acknowledgements ----
Prepared for the FRB-JMCB research conference "Financial Markets and Monetary Policy," Washington, DC, June 4-5, 2009. We thank Argia Sbordone, John Taylor and John Williams for helpful discussions, and the NSF for research support of the second author. The views expressed in this paper are those of the authors and do not necessarily reflect positions of the Federal Reserve Bank of New York, the Federal Reserve System, or the National Bureau of Economic Research.