Buscar
Mostrando ítems 1-10 de 17
Measuring the effects of unconventional monetary policy on asset prices
On 16 December 2008 the U.S. Federal Reserve’s Federal Open Market Committee (FOMC) lowered the federal funds rate—its traditional monetary policy instrument—to essentially zero in response to the most severe U.S. financial crisis since the Great Depression. Because U.S. currency carries an interest ...
Interest rate policies banking and the macroeconomy
The debate over the effectiveness of monetary policy often centers around the benefits of low interest rates as a stimulus for the real economy. The idea is that low interest rates encourage spending either in the form of consumption or investment and this promotes employment and production. The ...
International aspects of the zero lower bound constraint
Large negative aggregate demand shocks can drive down an economy’s equilibrium real interest rate and if the central bank is committed to stabilizing inflation monetary policy may be hampered by the zero lower bound on nominal interest rates –the economy may be in a 'liquidity trap.' The policy dilemma ...
Forward guidance in hte yield curve: short rates versis bond supply
Since late 2008 when short-term interest rates reached their zero lower bound central banks have been conducting monetary policy through two primary instruments: quantitative easing (QE) in which they buy long-term government bonds and other long-term securities and so-called forward guidance in which ...
Domestic financial frictions and the transmission of foreign shocks in Chile
In the early 90’s a literature emerged emphasizing the role of external factors in explaining business cycle fluctuations in emerging countries. In particular changes in the terms of trade and world interest rates are generally viewed as the main external factors affecting these economies. Additionally ...
Heterodox central banking
In response to the current global crisis the U.S. Federal Reserve and other central banks around the world have implemented diverse policy measures including purchasing a wide range of securities lending to financial institutions intervening in foreign exchange markets and paying interest on reserves. ...
Monetary policy and global spillovers: mechanisms effects and policy measures: an overview
The global economy of today 'is a small world after all.' The high degree of international trade integration and financial interconnectedness has created tight linkages across most countries even between countries that may be very distant geographically or that may not have significant trade or financial ...
Negative interest rates: lessons from the Euro area
In June 2014 the European Central Bank (ECB) decided to cut the rate on its deposit facility (DFR) by 10 basis points (bp) into negative territory an unprecedented move as no major central bank had used negative rates before. This decision was part of a more comprehensive monetary policy easing package ...
Fiscal multipliers and policy coordination
This paper is about an economy in a liquidity trap that is an environment with a zero nominal interest rate deflationary pressures and subpar growth. The paper shows two fiscal policy multipliers in a relatively standard New Keynesian liquidity trap economy with taxation costs. It computes real ...
Short-term interest rates and bank lending terms: evidence from a survey of U.S. loans
The long period of low interest rates that followed the global financial crisis has rekindled interest in how short-term interest rates affect bank behavior. In particular it has led to a debate on how low policy rates influence bank risk-taking. This risk-taking channel of monetary policy corresponds ...