What has happened to the volatility of interest rates

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During much of the postwar period, the Fed attempted to stabilize nominal interest rates. However, during 1979-1982 the Fed under Paul Volcker greatly reduced its emphasis on interest rate stabilization to focus on fighting inflation. Calculate and graph the quarter-to-quarter change in the three-month Treasury bill rate since 1961. What happened to the volatility of interest rates in the 1979-1982 period? What has happened to the volatility of interest rates since 1982? Does your answer change if your measure of the interest rate is the ten-year government bond rate?

Reference no: EM131131194

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