Monetary Policy and Bond Option Pricing in an Analytical RBC Model

Auteur(s)

Paul Söderlind

Accéder

Description

This paper analyzes how bond option prices are affected by different types of monetary policy. Analytical results from a general equilibrium model with sticky wages show that employment or output targeting typically give lower bond option prices than inflation targeting.

Sujets

Sciences economiques > Monnaie et marchés financiers

Institution partenaire

Université de St-Gall - Schools of Management

Langue

English

Date

2003