About this document
Yield Curve and Economic Dynamics by miscudipt is a document available to read on EtoBox.
This working paper analyzes the term structure implications of a micro-founded macroeconomic model that incorporates nominal rigidities, inflation persistence, and habit formation. The authors find that with certain modifications, the model can match key features of bond yields and macroeconomic variables, providing a better fit than previous models. Additionally, they derive analytical solutions for yields and a decomposition of expected excess returns, although the model still lacks satisfactory character
- Author
- miscudipt
- Language
- EN