Date of Award
Spring 2017
Project
Capstone - Open Access
Major
Mathematics & Economics
First Advisor
Anthony Laramie
Abstract
The goal of this paper is to understand the term structure of interest rates. The term structure of interest rates shows how interest rates on the same assets with different maturities change. The term structure is displayed in what is known as a yield curve. While it is typically upward sloping, the yield curve shifts and changes slope as the economy changes. Looking at the history of yield curve can help predict different phases of the economy over time. During the recent financial crisis, a form of monetary policy, known as quantitative easing (QE), was used to lower long term interest rates. This paper will explore the history, rationale, and opinions on quantitative easing. In addition, for illustrative purposes, data were collected in an attempt to discover a relationship between the yields on one and ten-year treasury bonds.
Recommended Citation
Angelo, David, "Impact of Quantitative Easing on the Term Structure of Interest Rates" (2017). Honors Senior Capstone Projects. 18.
https://scholarworks.merrimack.edu/honors_capstones/18
