Real interest rates across countries linked, impacting global inflation forecasts.
The article explores the relationship between money, interest rates, and inflation. It looks at how monetary policy affects long-term and short-term interest rates, as well as the connection between real interest rates and inflation. The researchers investigate whether real interest rates are the same across different countries and analyze how future market data can help predict interest rate behavior. They also study the information in the term structure to understand future inflation and interest rates. Key findings include the impact of monetary policy regime shifts on real interest rates and the ability of the term structure to provide insights into future inflation trends.