Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/211581 
Year of Publication: 
1990
Series/Report no.: 
Bank of Finland Discussion Papers No. 6/1990
Publisher: 
Bank of Finland, Helsinki
Abstract: 
The paper analyzes the applicability of variable parameter models to examine the behaviour of the interest rates in the market for cd's on the first market day after the bank strike, 7.3.1990, and on the first "normal" Wednesday after the strike, 21.3.1990. The data is minute data and variable parameter models are used as a way to capture the impact of information processing by traders on the interest rates. The results indicate that variable parameter models give satisfactory results. According to the models, the behaviour of the interest rates was more erratic before the interventions by the the Bank of Finland on both days. The banks' receive information on their position vis á vis the Bank of Finland at noon. On the 7.3. this information seemed to surprise banks whereas on the 21.3. there is no evidence of this.
Persistent Identifier of the first edition: 
ISBN: 
951-686-244-6
Document Type: 
Working Paper

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