Statistics & Publication
Forecasting Real Interest Rates Using the Yield Curve: Evidence From Ghana.
Wednesday, 30 June 2004 00:00
The high acclaim of the term structure theory among policymakers in both developed and developing economies stems from the increased empirical realization that the slope of the yield curve (the yield spread) is capable of explaining future changes in rates of output, inflation and real interest (Plosser and Rouwenhorst, 1994; Dotsey, 1998; Fama, 1984; Fama and Bliss, 1987; Campbell and Shiller, 1987; Hardouvelis, 1988; Mishkin, 1988). Evidently, knowledge of the nature of future changes in these variables is deemed to, among other things, aid the implementation of monetary policy, the pricing of securities and the testing of term structure theories (Bolder and Streliski, 1999).

pdf-logo Download the full text
 

Staff Working Papers and Policy Briefs