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Monetary policy surprises and the expectations hypothesis at the short end of the yield curve

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We test the expectations hypothesis by analyzing changes in three-month T-Bill rates (TB3) after FOMC meetings. By estimating the revisions in expectations of future overnight rates, we find a one-to-one relationship between changes in TB3 and path revisions. (C) 2008 Elsevier B.V. All rights reserved.

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Elsevier Science Sa

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Economics

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Economics Letters

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10.1016/j.econlet.2008.03.018

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