TY  - JOUR
AU  - Svensson,Lars E.O.
TI  - Estimating and Interpreting Forward Interest Rates: Sweden 1992 - 1994
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 4871
PY  - 1994
Y2  - September 1994
UR  - http://www.nber.org/papers/w4871
L1  - http://www.nber.org/papers/w4871.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  - The use of forward interest rates as a monetary policy indicator is demonstrated, using Sweden 1992-1994 as an example.  The forward rates are interpreted as indicating market expectations of the time- path of future interest rates, future inflation rates, and future currency depreciation rates.  They separate market expectations for the short, medium and long term more easily than the standard yield curve.  Forward rates are estimated with an extended and more flexible version of Nelson and Siegel's functional form.
ER  -