TY  - JOUR
AU  - Svensson,Lars E.O.
TI  - Monetary Policy with Flexible Exchange Rates and Forward Interest Rates as Indicators
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4633
PY  - 1995
Y2  - March 1995
UR  - http://www.nber.org/papers/w4633
L1  - http://www.nber.org/papers/w4633.pdf
N1  - Author contact info:
Lars E.O. Svensson
Sveriges Riksbank
SE-103 37 Stockholm
SWEDEN
Tel: +46 8 787 0107
Fax: +46 8 21 0531
E-Mail: lars.svensson@iies.su.se
AB  - In the new situation with flexible exchange rates, monetary policy in Europe will have to rely more on indicators than previously under fixed rates.  One of the potential indicators, the forward interest rate curve, can be used to indicate market expectations of the time-paths of future short interest rates, monetary policy, inflation rates and currency depreciation rates.  The forward rate curve separates market expectations for the short, medium and long term more easily than the standard yield curve.  Monetary policy in France, Germany, Great Britain, Sweden and the United States is interpreted with the help of forward rates.
ER  -