Essays on Monetary and Macroprudential Policies with Different Models of Expectation PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Essays on Monetary and Macroprudential Policies with Different Models of Expectation PDF full book. Access full book title Essays on Monetary and Macroprudential Policies with Different Models of Expectation by Hasiando Ginsar Manik. Download full books in PDF and EPUB format.
Author: Hasiando Ginsar Manik
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Hasiando Ginsar Manik
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Pierre-Richard Agenor
Publisher: MIT Press
ISBN: 0262359421
Category : Business & Economics
Languages : en
Pages : 601
Get Book Here
Book Description
An integrated analysis of how financial frictions can be accounted for in macroeconomic models built to study monetary policy and macroprudential regulation. Since the global financial crisis, there has been a renewed effort to emphasize financial frictions in designing closed- and open-economy macroeconomic models for monetary and macroprudential policy analysis. Drawing on the extensive literature of the past decade as well as his own contributions, in this book Pierre-Richard Age&́nor provides a unified set of theoretical and quantitative macroeconomic models with financial frictions to explore issues that have emerged in the wake of the crisis. These include the need to understand better how the financial system amplifies and propagates shocks originating elsewhere in the economy; how it can itself be a source of aggregate fluctuations; the extent to which central banks should account for financial stability considerations in the conduct of monetary policy; whether national central banks and regulators should coordinate their policies to promote macroeconomic and financial stability; and how much countercyclical macroprudential policies should be coordinated at the international level to mitigate financial spillovers across countries.
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN: 1498339174
Category : Business & Economics
Languages : en
Pages : 33
Get Book Here
Book Description
MCM conducted a survey in December 2010 to take stock of international experiences with financial stability and the evolving macroprudential policy framework. The survey was designed to seek information in three broad areas: the institutional setup for macroprudential policy, the analytical approach to systemic risk monitoring, and the macroprudential policy toolkit. The survey was sent to 63 countries and the European Central Bank (ECB), including all countries in the G-20 and those subject to mandatory Financial Sector Assessment Programs (FSAPs). The target list is designed to cover a broad range of jurisdictions in all regions, but more weight is given to economies that are systemically important (see Annex for details). The response rate is 80 percent. This note provides a summary of the survey’s main findings.
Author: Benedikt Mario Kolb
Publisher:
ISBN:
Category : Global Financial Crisis, 2008-2009
Languages : en
Pages : 191
Get Book Here
Book Description
This thesis focuses on recent monetary and macroprudential policies addressing the Financial Crisis. Chapter 1 stresses the role of central-bank communication. In particular, shocks derived from movements in federal funds futures prices during monetary policy announcement days have become popular for analysing U.S. monetary policy. While the literature often considers only surprise changes in the policy rate ("action shocks"), we distinguish between action and "communication shocks" (surprise announcements about future rates), using a novel decomposition of futures price movements. Our results indicate that communication shocks are the main driver of U.S. monetary policy shocks and that they explain a substantial share of variation in production. Chapter 2 turns to a macroprudential topic: How will a tightening in aggregate bank capital requirements affect the real economy? In this paper, we investigate this using a narrative index of regulatory US bank capital requirement changes for the period 1980M1 to 2016M8. Our results robustly suggest that a tightening in capital requirements leads to a temporary drop in lending and economic activity. The aggregate capital ratio and the level of bank capital increase permanently. Our results suggest that permanently higher capital requirements have no lasting negative effect on the real economy. Finally, Chapter 3 looks at asset purchases by the ECB. Their declared goal is to revive inflation, but purchases of which asset will be best suited for this? I address this question in a DSGE model with a role for three different asset classes: Government bonds, securitised financial assets and corporate sector bonds, which affect the economy via different channels. I investigate the impact of asset purchases in an environment of low inflation and a policy rate at the zero lower bound. Purchases of government bonds appear most effective in countering disinflationary episodes, while those of securitised assets have less impact.
Author: Mingjun Zhao
Publisher:
ISBN:
Category : Bayesian statistical decision theory
Languages : en
Pages : 76
Get Book Here
Book Description
Abstract: My dissertation grapples with the issues of model uncertainty in macroeconomics, and analyzes its consequences for monetary policy. It consists of three essays. In the first essay (Chapter 1), "Monetary Policy under Misspecified Expectations", I examine policy choices for the central bank that faces uncertainty about the process of expectation formation by economic agents. The economy contains both "rule-of-thumb" agents who base their expectations on recent observations and agents who have rational expectations. The central bank is uncertain about the fraction of the rule-of-thumb agents. This uncertainty concern enables me to partially rationalize the over cautious policy stance of the Fed: empirically observed policy in the past two decades involves much weaker responses than optimal policies derived from various micro-founded models. It is well understood that when the economy is more forward-looking, the central bank displays more aggressive responses to inflation and output. But the uncertainty-averse central bank evaluates policies by the performance in the worst case. In my economy this has a high fraction of agents that are backward-looking. The best policy the central bank chooses thus involves moderate responses. That is to say, this minimax policy moves closer toward actual less responsive policy. In the second essay (Chapter 2), "Phillips Curve Uncertainty and Monetary Policy", I investigate the effect of model uncertainty on policy choices employing a more general approach, which nests the minimax and Bayesian approaches as limiting cases. The central bank is uncertain about whether the economy has a sticky price Phillips curve or a sticky information Phillips curve. I argue that how the central bank chooses a policy depends both on its perception of uncertainty environment and on its attitude towards uncertainty. I find that as the central bank either becomes more uncertainty-averse or considers sticky information more plausible, the response to inflation decreases and to output increases. The third essay (Chapter 3) is entitled "Optimal Simple Rules in RE Models with Risk Sensitive Preferences". This paper provides a useful method to solve optimal simple rules under risk sensitive preference in macro models with forward looking behavior. An application to a new Keynesian model with lagged dynamics is offered and risk sensitive preference is found to amplify policy responses.
Author: Jacek Osinski
Publisher: International Monetary Fund
ISBN: 1484369998
Category : Business & Economics
Languages : en
Pages : 28
Get Book Here
Book Description
Effective arrangements for micro and macroprudential policies to further overall financial stability are strongly desirable for all countries, emerging or advanced. Both policies complement each other, but there can also be potential areas of overlap and conflict, which can complicate this cooperation. Organizing their very close interactions can help contain these potential tensions. This note clarifies the essential features of macroprudential and microprudential policies and their interactions, and delineates their borderline. It proposes mechanisms for aligning both policies in the pursuit of financial stability by identifying those elements that are desirable for effective cooperation between them. The note provides general guidance. Actual arrangements will need take into account country-specific circumstances, reflecting the fact that that there is no “one size fits all.”
Author: El Bachir Boukherouaa
Publisher: International Monetary Fund
ISBN: 1589063953
Category : Business & Economics
Languages : en
Pages : 35
Get Book Here
Book Description
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Author: Mr.Stijn Claessens
Publisher: International Monetary Fund
ISBN: 1475561008
Category : Business & Economics
Languages : en
Pages : 66
Get Book Here
Book Description
This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.
Author: Board of Governors of the Federal Reserve System
Publisher:
ISBN: 9780894991967
Category : Banks and Banking
Languages : en
Pages : 0
Get Book Here
Book Description
Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1463922604
Category : Business & Economics
Languages : en
Pages : 85
Get Book Here
Book Description
This paper provides the most comprehensive empirical study of the effectiveness of macroprudential instruments to date. Using data from 49 countries, the paper evaluates the effectiveness of macroprudential instruments in reducing systemic risk over time and across institutions and markets. The analysis suggests that many of the most frequently used instruments are effective in reducing pro-cyclicality and the effectiveness is sensitive to the type of shock facing the financial sector. Based on these findings, the paper identifies conditions under which macroprudential policy is most likely to be effective, as well as conditions under which it may have little impact.
