The transmittance of changes of the prime rate to the long end of the yield curve - and why it actually does not work

Seminar paper from the year 2007 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 1,0, Baden-Wuerttemberg Cooperative State University (DHBW), language: English, abstract: In February 2005, Fed’s Chairman Alan Greenspan wondered why the long end of the yield curve did not show any reaction to the hiking prime rate. Normally, a hiking prime rate gets throu...