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Did Korean Monetary Policy Help Soften the Impact of the Global Financial Crisis of 2008–09?

Alp, Harun - 2012

Korea was one of the Asian economies hardest hit by the global financial crisis. Anticipating the downturn that would follow the episode of extreme financial stress, the Bank of Korea (BOK) let the exchange rate depreciate as capital flowed out, and preemptively cut the policy rate by 325 basis...

Persistent link: https://www.econbiz.de/10013111411

Liquidity Ratios as Monetary Policy Tools : Some Historical Lessons for Macroprudential Policy

Monnet, Eric - 2019

on numerous historical documents, we show that liquidity ratios similar to the Liquidity Coverage Ratio (LCR) were … mechanisms described by contemporary central bankers, in which an increase in the liquidity ratio has contractionary effects …

Persistent link: https://www.econbiz.de/10012863975

Quasi-Fiscal Implications of Central Bank Crisis Interventions

Hooley, John; Khan, Ashraf; Lattie, Claney; Mak, Istvan; … - 2023

We develop a stylized balance sheet framework to help identify ‘quasi-fiscal’ components of central bank crisis interventions and show how sources of fiscal risk are created from both the new claims and how they are funded. Combining central bank balance sheet data with survey evidence from...

Persistent link: https://www.econbiz.de/10014354111

Will Macroprudential Policy Counteract Monetary Policy's Effects on Financial Stability?

Agur, Itai - 2016

How does monetary policy impact upon macroprudential regulation? This paper models monetary policy's transmission to bank risk taking, and its interaction with a regulator's optimization problem. The regulator uses its macroprudential tool, a leverage ratio, to maintain financial stability,...

Persistent link: https://www.econbiz.de/10012996077

Cost-Benefit Analysis of Leaning Against the Wind : Are Costs Larger Also with Less Effective Macroprudential Policy?

Svensson, Lars - 2016

'Leaning against the wind' (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a...

Persistent link: https://www.econbiz.de/10012996078

Macroprudential Policies in Response to External Financial Shocks

de Carvalho Filho, Irineu; Ng, DingXuan - 2023

This paper examines how countries use Macroprudential Policies (MaPs) to respond to external shocks such as US monetary policy surprises or fluctuations in capital flows. Constructing a model of a small open economy with financial frictions and a MaP authority that adjusts loan to value (LTV)...

Persistent link: https://www.econbiz.de/10014257930

'Leaning Against the Wind' and the Timing of Monetary Policy

Agur, Itai - 2013

If monetary policy is to aim also at financial stability, how would it change? To analyze this question, this paper develops a general-form framework. Financial stability objectives are shown to make monetary policy more aggressive: in reaction to negative shocks, cuts are deeper but...

Persistent link: https://www.econbiz.de/10013082854

Liquidity at Risk : Joint Stress Testing of Solvency and Liquidity

Cont, Rama - 2020

. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which … testing of solvency and liquidity: our approach exploits the mechanisms underlying the solvency-liquidity nexus to derive … relations between solvency shocks and liquidity shocks. These relations are then used to model liquidity and solvency risk in a …

Persistent link: https://www.econbiz.de/10012828230

Bankruptcy Procedures for Sovereigns : A History of Ideas, 1976-2001

Rogoff, Kenneth; Zettelmeyer, Jeromin - 2021

This paper describes the evolution of ideas to apply bankruptcy reorganization principles to sovereign debt crises. Our focus is on policy proposals between the late 1970s and Anne Krueger`s (2001) proposed Sovereign Debt-Restructuring Mechanism, with brief reference to the economics literature...

Persistent link: https://www.econbiz.de/10013317866

Investment in Brazil : From Crisis to Recovery

Krznar, Ivo - 2018

While Brazil's deep recession has been broad based, it has been marked by a particularlylarge fall in investment. Real investment fell by around 30 percent between the beginningof 2014 and the beginning of 2017. This paper finds that a variety of factors contributed tothe investment decline,...

Persistent link: https://www.econbiz.de/10012928618