Great post! How do interest rates being high or unexpectedly so directly affect investors’ decisions on funds they’ve already raised. Is it conscious and even formulaic or less direct than that?
Really cool post! Have you looked into using changes in Fed Funds futures on FOMC announcement days as a way to measure the "surprise" component of monetary policy changes? Maybe you don't have enough observations when you do it that way, but it is a very clean way to identify the effects of monetary policy on asset valuations.
Great post! How do interest rates being high or unexpectedly so directly affect investors’ decisions on funds they’ve already raised. Is it conscious and even formulaic or less direct than that?
Really cool post! Have you looked into using changes in Fed Funds futures on FOMC announcement days as a way to measure the "surprise" component of monetary policy changes? Maybe you don't have enough observations when you do it that way, but it is a very clean way to identify the effects of monetary policy on asset valuations.