[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-324844-105":59,"doc-detail-324844-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","interest-rates-yield-curves-and-the-monetary-regime-regimes","Interest Rates, Yield Curves, and the Monetary Regime - Regimes","","Explains how the Federal Reserve’s targeted federal funds rate affects broader interest rates, emphasizing that the transmission depends on public expectations shaped by the institutional monetary policy regime. Defines monetary regime as both the policy framework and the accompanying credibility beliefs, contrasting commodity standards (e.g., gold) with fiat systems. Discusses how credibility influences inflation persistence and how regime differences help interpret yield-curve information and historical examples.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/interest-rates-yield-curves-and-the-monetary-regime-regimes/324844/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/interest-rates-yield-curves-and-the-monetary-regime-regimes/324844.png","ImageObject",300,407,{"name":92,"@type":93},"Seraphina","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",12,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why does the Fed’s federal funds rate not directly determine longer-term rates?","Question",{"text":113,"@type":114},"Longer-term rates depend not only on current and expected Fed actions, but also on how people perceive the goals and credibility of the monetary authority.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"How is a monetary regime defined in the article?",{"text":118,"@type":114},"A monetary regime is described as an institutional setup for monetary policy together with public expectations about commitment and credibility.",{"name":120,"@type":111,"acceptedAnswer":121},"What distinguishes a commodity standard from a fiat regime in this text?",{"text":122,"@type":114},"Commodity standards allow money to be converted into a commodity (typically gold), while fiat regimes have no backing in commodities and rely on declared or expected low-inflation credibility.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},324844,1790106233,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},962075114101,"https://ap-avatar.wpscdn.com/avatar/e000253a75eb197efd?x-image-process=image/resize,m_fixed,w_180,h_180&k=1780044092746381165","by Joseph G.Haubrich  \nTalk to just about any FederalReserve economist,and they will tellyou that at cocktail parties,schoolfundraisers,and whatnot,the questionthey always get askedis\"where areinterest rates going?\"Now while theFed economist may have litle wisdomto impart,it is true that the FederalReserve does target interest rates.The rate that the Fed targets,how-ever,the federal funds rate,is of directinterest only to bankers and otherinvestment professionals (who seemover-represented in certain Cub Scoutpacks,but that's another story).Therates people worry about are the onesthat more directly affect them—mort-gages,auto loans,credit cards.  \nOf course,the Federal Reserve doesaffect these interest rates,but the con-nection between the short-term ratestargeted by the Fed and the longer-term rates most pconle worry about iscomplicated and involves some subtlefactors.It's generally understood thatwhen the Fed changes the federalfunds rate,other rates in the econ-omy also change.What's less appre-ciated is that the way interest rateschange depends not just on what theFed does today,or even next monthor next year,but also on people's per-ceptions about the goals and credibil-ity of the monetary authority.Thesegoals and the accompanying expecta-tions in turn depend on the institutionalarrangements of monetary policy—some countries have laws mandatinglow inflation,others have a traditionof keeping inflation low,still others  \nInterest Rates,Yield Curves,andthe Monetary Regime  \nhave nothing of the kind.This Eco-nomie Commentary looks at how sucharrangements infuence the impact ofFederal Reserve actions on the broaderfinancial markets.In a phrase,it looksat the impact of monetary regimes.  \n## ■Regimes\n\nProbably the best way to think of amonetary regime is as a set of institu-tional arrangements—how monetarypolicy is set up—along with the cor-responding expectations of the pub-lic.Thus it's not just what is called themonetary standard,which comprisesthe laws,regulations,and bureaucracygoverning the money supplybut alsoincludes expectations—does the publicbelieve the commitment to zero infla-tion,or not?  \nThe concept of a monetary regime isquite broad.The situations encom-passed range from systems wheremoney consists of unbacked,ratherflimsy pieces of paper to those wherepeople knew the money supply wouldchange only if someone sailed to a dis-tant island and returned with disk hewnfrom solid rock(as was the case on theIsle ofYap).Usually though,monetaryregimes tend to be a variation of two(somewhat idealized)types:commod-ity standards and fiat systems.  \nCommodity standards presuppose thatmoneyisfreely convertible into a com-modity—usually gold,but silver is alsocommon.Under a gold standard,forexample,the money supply is fixed bythe supply of gold in the world.Thisprovides a nominal anchor to the pricelevel,effectively preventing long-terminflation since it ties money to gold.  \nJune 2004  \nThe yield curve has a wealth ofinformation about future interestrates and economic conditions.Users should exercise caution,though,as many of the rela-tionships that hold between thebehavior of the curve and what itfortells depend on the monetaryregime in place at the time thecurve is drawn.  \nOfcourse,some inflation is still pos-sible in the short run because trans-port costs,shipping delays,and so onmean that money isn't immediatelyconverted into gold,but barring majorgold discoveries,the inflation will dis-sipate quickly  \nA fiat regime has no backing formoney.That is,the govenment orcentral bank will only exchange yourpaper money for other paper money,not gold or silver.(The word fiatcomes from the Latin for\"let it bedone.\"indicating that the governmentjust declares that the paper is money.)  \nA gold standard is not the only regimethat will keep inflation low.A fiatregime,where money is not backed,can still be credible if there is a com-mitment to low infation.This commit-ment might be informal,just a consen-sus of those in charge,or the pr","cbCaiuELjFzS4SkA","https://ap.wps.com/l/cbCaiuELjFzS4SkA","pdf",1153800,"English","# Regimes\n## Monetary regime concept\n## Commodity standards\n## Fiat regimes\n## Credibility and inflation persistence\n## Historical examples","[{\"question\":\"Why does the Fed’s federal funds rate not directly determine longer-term rates?\",\"answer\":\"Longer-term rates depend not only on current and expected Fed actions, but also on how people perceive the goals and credibility of the monetary authority.\"},{\"question\":\"How is a monetary regime defined in the article?\",\"answer\":\"A monetary regime is described as an institutional setup for monetary policy together with public expectations about commitment and credibility.\"},{\"question\":\"What distinguishes a commodity standard from a fiat regime in this text?\",\"answer\":\"Commodity standards allow money to be converted into a commodity (typically gold), while fiat regimes have no backing in commodities and rely on declared or expected low-inflation credibility.\"}]","Interest Rates, Yield Curves, and the Monetary Regime - Regimes | PDF",1789969022,13]