488 - Term structure of interest rates, economic activity and the implications for monetary policy: an empirical analysis for the Netherlands

Wetenschappelijke publicatie
Date 6 February 1997

This paper examines the information in the term structure of interest rates with respect to economic activity in the Netherlands and the role of the term structure for monetary policy. The term structure provides information about future economic growth, especially at the short end. In this sense the term structure is an useful indicator for economic activity. The term structure is, however, for the monetary authorities not useful as a intermediate variable since the relation between the term structure and economic activity is not stable and the term structure is hard to control.