Commentary.

The author comments on the paper by Michael F. Gallmeyer et al examining the impact of monetary policy on long-term interest rates and the volatility of the long end of the yield curve. She commends the authors for devising an economic model with potential for explaining yield curves and volatility. She asserts that the exogenous inflation specification is too restrictive and it should allow a variable inflation-risk premium. She emphasizes the need to examine alternative interest rate rules.