Willem Buiter’s blog discusses the possibility that the fiscal measures taken today could lead to inflation tomorrow -- which could have implications for expected short rates and, therefore, for current long rates. A printable version is here.

Tags: Short rates, Inflation, Long rates, Fiscal policy, Monetary policy

In the second lecture we talked about trading between ten-year and two-year bonds in order to take advantage of differences between our forecasts of the slope of the yield curve and the curves current slope. The course materials page has a link to a short paper on this topic, albeit focused on bond futures rather than bonds per se.

Tags: Short rates, Monetary policy, Long rates

Willem Buiter’s blog on the FT gives a great explanation of the difference between qualitative and quantitative easing. A printable copy of the article is available on the course materials pages, and you can get to the original, with a photo of our hero, here.

Tags: Monetary policy

Short rates play a key part in our course, so you might be interested to see the letter from the (former) Chancellor to the Governor of the Bank of England setting out what the Bank’s responsibilities are. It’s on the Course materials page.

Tags: Monetary policy