Taking two steps at a time: On the optimal pattern of policy interest rates

The Monetary Policy Decision-Making Process and the Term Structure of Interest Rates

“…For instance, Gerlach-Kristen (2004) reports that during the period January 2000 to December 2003, most central banks adjusted the policy rate at less than 50 percent of the scheduled policy meetings.…”

“…Eijffinger, Schaling, and Verhagen (1999), Gerlach-Kristen (2004), and Guthrie and Wright (2004), and the empirical analysis of these features includes Eichengreen, Watson, and Grossman (1985) and Gerlach (2005). However, these papers only deal with the dynamics of the policy rate and do not incorporate an analysis of the term structure of interest rates.…”