Monetary Policy, Interest Rate Rules, and the Term Structure of Interest Rates

Focusing on the integration of the term structure of interest rates into monetary policy analysis, the study explores both analytical and empirical dimensions of interest rate rules. It introduces advanced financial techniques to enhance macroeconomic concepts, demonstrating that term structure effects significantly extend traditional interest rate rules. The findings suggest that incorporating these effects into interest rate reaction functions provides deeper insights into the interest rate strategies of the Deutsche Bundesbank and the European Central Bank.