Author: Mr.Olivier Jeanne
Publisher: International Monetary Fund
ISBN: 145185790X
Category : Business & Economics
Languages : en
Pages : 45
Book Description
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange rate peg. This way, the central bank can implement the optimal escape from a liquidity trap, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the central bank cannot commit itself to a particular future money supply. It supports the feasibility of Svensson's Foolproof Way to escape from a liquidity trap.
Credible Commitment to Optimal Escape from a Liquidity Trap
Author: Mr.Olivier Jeanne
Publisher: International Monetary Fund
ISBN: 145185790X
Category : Business & Economics
Languages : en
Pages : 45
Book Description
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange rate peg. This way, the central bank can implement the optimal escape from a liquidity trap, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the central bank cannot commit itself to a particular future money supply. It supports the feasibility of Svensson's Foolproof Way to escape from a liquidity trap.
Publisher: International Monetary Fund
ISBN: 145185790X
Category : Business & Economics
Languages : en
Pages : 45
Book Description
An independent central bank can manage its balance sheet and its capital so as to commit itself to a depreciation of its currency and an exchange rate peg. This way, the central bank can implement the optimal escape from a liquidity trap, which involves a commitment to higher future inflation. This commitment mechanism works even though, realistically, the central bank cannot commit itself to a particular future money supply. It supports the feasibility of Svensson's Foolproof Way to escape from a liquidity trap.
Credible Commitment to Optimal Escape from a Liquidity Trap
Author: Olivier Jeanne
Publisher:
ISBN:
Category : Bank liquidity
Languages : en
Pages : 50
Book Description
Publisher:
ISBN:
Category : Bank liquidity
Languages : en
Pages : 50
Book Description
Bank of Japan Monetary and Economic Studies
Author:
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 284
Book Description
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 284
Book Description
Monetary and Economic Studies
Author:
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 522
Book Description
Publisher:
ISBN:
Category : Finance
Languages : en
Pages : 522
Book Description
Monetary Economics
Author: Steven Durlauf
Publisher: Springer
ISBN: 0230280854
Category : Performing Arts
Languages : en
Pages : 395
Book Description
Specially selected from The New Palgrave Dictionary of Economics 2nd edition, each article within this compendium covers the fundamental themes within the discipline and is written by a leading practitioner in the field. A handy reference tool.
Publisher: Springer
ISBN: 0230280854
Category : Performing Arts
Languages : en
Pages : 395
Book Description
Specially selected from The New Palgrave Dictionary of Economics 2nd edition, each article within this compendium covers the fundamental themes within the discipline and is written by a leading practitioner in the field. A handy reference tool.
Monetary Policy Alternatives at the Zero Bound
Author: Ben S. Bernanke
Publisher: www.bnpublishing.com
ISBN: 9781607961055
Category :
Languages : en
Pages : 0
Book Description
The success over the years in reducing inflation and, consequently, the average level of nominal interest rates has increased the likelihood that the nominal policy interest rate may become constrained by the zero lower bound. When that happens, a central bank can no longer stimulate aggregate demand by further interest-rate reductions and must rely on "non-standard" policy alternatives. To assess the potential effectiveness of such policies, we analyze the behavior of selected asset prices over short periods surrounding central bank statements or other types of financial or economic news and estimate "noarbitrage" models of the term structure for the United States and Japan. There is some evidence that central bank communications can help to shape public expectations of future policy actions and that asset purchases in large volume by a central bank would be able to affect the price or yield of the targeted asset.
Publisher: www.bnpublishing.com
ISBN: 9781607961055
Category :
Languages : en
Pages : 0
Book Description
The success over the years in reducing inflation and, consequently, the average level of nominal interest rates has increased the likelihood that the nominal policy interest rate may become constrained by the zero lower bound. When that happens, a central bank can no longer stimulate aggregate demand by further interest-rate reductions and must rely on "non-standard" policy alternatives. To assess the potential effectiveness of such policies, we analyze the behavior of selected asset prices over short periods surrounding central bank statements or other types of financial or economic news and estimate "noarbitrage" models of the term structure for the United States and Japan. There is some evidence that central bank communications can help to shape public expectations of future policy actions and that asset purchases in large volume by a central bank would be able to affect the price or yield of the targeted asset.
The Quality of Eligible Collateral, Central Bank Losses and Monetary Stability
Author: Philipp Lehmbecker
Publisher: Peter Lang
ISBN: 9783631580769
Category : Business & Economics
Languages : en
Pages : 276
Book Description
This book investigates to what extent the quality of eligible collateral is able to explain inflation. Addressing this question, hypotheses derived from the Theory of Property Economics by Heinsohn & Steiger are tested. Data are collected using a questionnaire, answered by central banks. An index of the quality of eligible collateral is constructed. Regression analyses are performed based on a sample of 62 countries for the period 1990 to 2003. A negative, robust and statistically significant correlation between inflation and the quality of eligible collateral is found. Central bank independence cannot contribute to the explanation of inflation. The result supports the theory of Heinsohn & Steiger: Securitisation of central bank lending is crucial for price stability.
Publisher: Peter Lang
ISBN: 9783631580769
Category : Business & Economics
Languages : en
Pages : 276
Book Description
This book investigates to what extent the quality of eligible collateral is able to explain inflation. Addressing this question, hypotheses derived from the Theory of Property Economics by Heinsohn & Steiger are tested. Data are collected using a questionnaire, answered by central banks. An index of the quality of eligible collateral is constructed. Regression analyses are performed based on a sample of 62 countries for the period 1990 to 2003. A negative, robust and statistically significant correlation between inflation and the quality of eligible collateral is found. Central bank independence cannot contribute to the explanation of inflation. The result supports the theory of Heinsohn & Steiger: Securitisation of central bank lending is crucial for price stability.
The Mistake of 1937
Author: Gauti B. Eggertsson
Publisher:
ISBN:
Category : Deflation (Finance)
Languages : en
Pages : 40
Book Description
"This paper studies a dynamic general equilibrium model with sticky prices and rational expectations in an environment of low interest rates and deflationary pressures. We show that small changes in the public's beliefs about the future inflation target of the government can lead to large swings in both inflation and output. This effect is much larger at low interest rates than under regular circumstances. This highlights the importance of effective communication policy at zero interest rates. We argue that confusing communications by the US Federal Reserve, the President of the United States, and key administration officials about future price objectives were responsible for the sharp recession in the US in 1937-38, one of the sharpest recessions in US economic history. Poor communication policy is the mistake of 1937. Before committing the mistake of 1937 the US policy makers faced economic conditions that are similar in some respect to those confronted by Japanese policy makers in the first half of 2006."--Authors' abstract.
Publisher:
ISBN:
Category : Deflation (Finance)
Languages : en
Pages : 40
Book Description
"This paper studies a dynamic general equilibrium model with sticky prices and rational expectations in an environment of low interest rates and deflationary pressures. We show that small changes in the public's beliefs about the future inflation target of the government can lead to large swings in both inflation and output. This effect is much larger at low interest rates than under regular circumstances. This highlights the importance of effective communication policy at zero interest rates. We argue that confusing communications by the US Federal Reserve, the President of the United States, and key administration officials about future price objectives were responsible for the sharp recession in the US in 1937-38, one of the sharpest recessions in US economic history. Poor communication policy is the mistake of 1937. Before committing the mistake of 1937 the US policy makers faced economic conditions that are similar in some respect to those confronted by Japanese policy makers in the first half of 2006."--Authors' abstract.
IMF Research Bulletin
Author:
Publisher:
ISBN:
Category : International finance
Languages : en
Pages : 218
Book Description
Publisher:
ISBN:
Category : International finance
Languages : en
Pages : 218
Book Description
Environmental, Social, and Governance Perspectives on Economic Development in Asia
Author: William A. Barnett
Publisher: Emerald Group Publishing
ISBN: 1801175969
Category : Business & Economics
Languages : en
Pages : 239
Book Description
This new volume of the International Symposia in Economic Theory and Econometrics explores the latest economic and financial developments in Asia.
Publisher: Emerald Group Publishing
ISBN: 1801175969
Category : Business & Economics
Languages : en
Pages : 239
Book Description
This new volume of the International Symposia in Economic Theory and Econometrics explores the latest economic and financial developments in Asia.