Does the Fed Control Interest Rates?

The Review of Asset Pricing Studies, Forthcoming

Chicago Booth Research Paper No. 12-23

Fama-Miller Working Paper

6 Pages Posted: 5 Aug 2012 Last revised: 9 Nov 2020

See all articles by Eugene F. Fama

Eugene F. Fama

University of Chicago - Finance

Date Written: June 29, 2013

Abstract

My paper, “Does the Fed control interest rates?” is in the 2013 Review of Asset Pricing Studies (Volume 3, pp. 180-199). The paper finds that the Fed controls the Federal Funds (FF) rate (the overnight rate on interbank borrowing of reserves). Other short-term rates are related to FF, but they take long swings away from FF, and the relations between FF and other rates weaken quickly for longer maturities.

JEL Classification: E20, E42, E43, E44, E52, E58, G12, G18

Suggested Citation

Fama, Eugene F., Does the Fed Control Interest Rates? (June 29, 2013). The Review of Asset Pricing Studies, Forthcoming, Chicago Booth Research Paper No. 12-23, Fama-Miller Working Paper, Available at SSRN: https://ssrn.com/abstract=2124039 or http://dx.doi.org/10.2139/ssrn.2124039

Eugene F. Fama (Contact Author)

University of Chicago - Finance ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7282 (Phone)
773-702-9937 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
4,856
Abstract Views
21,688
rank
2,120
PlumX Metrics