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  4. MONETARY POLICY TRANSMISSION AND FARMLAND DYNAMICS: EVIDENCE FROM FEDERAL FARM CREDIT BANKS FUNDING CORPORATION BONDS

MONETARY POLICY TRANSMISSION AND FARMLAND DYNAMICS: EVIDENCE FROM FEDERAL FARM CREDIT BANKS FUNDING CORPORATION BONDS

File(s)
Zhao_cornell_0058O_12416.pdf (1.73 MB)
Permanent Link(s)
https://doi.org/10.7298/cfpm-dh41
https://hdl.handle.net/1813/117496
Collections
Cornell Theses and Dissertations
Author
Zhao, Jingjun
Abstract

This study evaluates the potential of Federal Farm Credit Banks Funding Corporation (FCFC) bond yields as a lens to understand the transmission of U.S. monetary policy. FCFC bonds, as government-sponsored enterprise securities, uniquely combine an implicit government guarantee with exposure to the U.S. agricultural sector. The research investigates whether changes in the Federal Funds Rate are effectively transmitted through FCFC bond yields, and how these yields reflect both policy shifts and sector-specific dynamics. By comparing FCFC bond yields to U.S. Treasury yields across maturities and incorporating agricultural market indicators, the study develops an integrated empirical framework to disentangle policy-driven effects from sector-specific risks in bond pricing. The findings highlight the role of FCFC bonds as responsive financial instruments that connect policy signals with the real economic outcomes, particularly within agriculture. This provides a novel perspective on how sector-targeted bonds can enhance our understanding of monetary policy effectiveness.

Description
58 pages
Date Issued
2025-05
Keywords
Farm Credit Banks Funding Corporation (FCFC) bond
•
Farmland
•
Monetary Policy
•
U.S. Treasury
Committee Chair
Turvey, Calum
Committee Member
Rickard, Bradley
Degree Discipline
Applied Economics and Management
Degree Name
M.S., Applied Economics and Management
Degree Level
Master of Science
Type
dissertation or thesis
Link(s) to Catalog Record
https://newcatalog.library.cornell.edu/catalog/16938277

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