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The Cost of 'Reform' | 21 comments (21 topical, editorial, 0 hidden)
Re: Hehe! (4.00 / 2)
That chart indicates that, if anything, the interbank rate drives the base rate. Changes in the base rate have no effect on the interbank rate.

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Carrie (migeru at eurotrib dot com) on Wed Apr 9th, 2008 at 04:36:44 PM EST
[ Parent ]
Not necessarily (4.00 / 2)
It can also mean that the central bank communicates effectively in advance what it will do, and thus the markets anticipate its movements correctly - they're "priced in" in advance.

What's more noticeable are the big jumps, which mark the times of financial acute crisis, and which suggest that we're entering a new one now.

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Wed Apr 9th, 2008 at 04:57:27 PM EST
[ Parent ]

The Cost of 'Reform' | 21 comments (21 topical, 0 editorial, 0 hidden)
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