01637cas a2200241 a 4500 AALejournalIMF008528 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874723 1018-5941 BD-DhAAL BD-DhAAL Nagayasu, Jun. The Term Structure of Interest Rates and Monetary Policy During a Zero-Interest-Rate Period / Jun Nagayasu. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper empirically evaluates the validity of the term structure of interest rates in a low-interest-rate environment. Applying a time-series method to high-frequency Japanese data, the term-structure model is found to be useful for economic analysis only when interest rates are high. When interest rates are low, the usefulness of the model declines, since the interest spread contains little information that can be used for predicting future economic activity. The term-structure relationship is also weakened by the Bank of Japan's use of interest rate smoothing. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/208 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/208/001.2003.issue-208-en.xml IMF e-Library