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Monetary policy in a downturn: Are financial crises special?

Bech, Morten; Gambacorta, Leonardo - Bank for International Settlements (BIS) - 2012

Accommodative monetary policy during the financial crisis was instrumental in preventing a deeper recession. Views differ, however, on how long such measures should be kept in place. At the heart of this debate is the notion that a protracted period of policy accommodation could create...

Persistent link: https://www.econbiz.de/10010849783

Inflation Dynamics in the Presence of Informal Labour Markets

Castillo, Paul; Montoro, Carlos - Bank for International Settlements (BIS) - 2012

In this paper we analyse the effects of informal labour markets on the dynamics of inflation and on the transmission of aggregate demand and supply shocks. In doing so, we incorporate the informal sector in a modified New Keynesian model with labour market frictions as in the...

Persistent link: https://www.econbiz.de/10010849785

Is monetary policy overburdened?

Orphanides, Athanasios - Bank for International Settlements (BIS) - 2013

Following the experience of the global financial crisis, central banks have been asked to undertake unprecedented … goals that may overburden monetary policy: full employment, fiscal sustainability and financial stability. While central … overreliance on monetary policy to achieve these goals is bound to disappoint. Central bank policies that facilitate postponement …

Persistent link: https://www.econbiz.de/10010849791

Interpreting TARGET2 balances

Cecchetti, Stephen; McCauley, Robert; McGuire, Patrick - Bank for International Settlements (BIS) - 2012

The increase in the TARGET2 balance for the Bundesbank has led to a debate in Germany about the appropriate interpretation and policy response, if any. In this paper we review the evidence for the current account financing interpretation, and find it wanting in explaining the data in 2012. BIS...

Persistent link: https://www.econbiz.de/10010849796

Should monetary policy lean against the wind? - an analysis based on a DSGE model with banking

Gambacorta, Leonardo; Signoretti, Federico M - Bank for International Settlements (BIS) - 2013

, leaning-against-the-wind policies are desirable in the case of supply-side shocks whenever the central bank is concerned with …

Persistent link: https://www.econbiz.de/10010849802

The FRBNY Staff Underlying Inflation Gauge: UIG

Amstad, Marlene; Potter, Simon; Rich, Robert - Bank for International Settlements (BIS) - 2014

Monetary policymakers and long-term investors would benefit greatly from a measure of underlying inflation that uses all relevant information, is available in real-time, and forecasts inflation better than traditional underlying inflation measures such as core inflation measures. This paper...

Persistent link: https://www.econbiz.de/10010886770

Developing an underlying inflation gauge for China

Amstad, Marlene; Huan, Ye; Ma, Guonan - Bank for International Settlements (BIS) - 2014

. Its construction follows the works at other major central banks, adopts the methodology of a dynamic factor model that …

Persistent link: https://www.econbiz.de/10010929854

Traditional and matter-of-fact financial frictions in a DSGE model for Brazil: the role of macroprudential instruments and monetary policy

Carvalho, Fabia A. de; Castro, Marcos R.; Costa, Silvio … - Bank for International Settlements (BIS) - 2014

required reserves deposited at the central bank that are remunerated at the base rate. Changes in required core capital …

Persistent link: https://www.econbiz.de/10010929855

Global Asset Allocation Shifts

Kroencke, Tim A; Schmeling, Maik; Schrimpf, Andreas - Bank for International Settlements (BIS) - 2015

We show that global asset reallocations of U.S. fund investors obey a strong factor structure, with two factors accounting for more than 90% of the overall variation. The first factor captures switches between U.S. bonds and equities. The second reflects reallocations from U.S. to international...

Persistent link: https://www.econbiz.de/10011210511

Liquidity Squeeze, Abundant Funding and Macroeconomic Volatility

Kharroubi, Enisse - Bank for International Settlements (BIS) - 2015

This paper studies the choice between building liquidity buffers and raising funding ex post, to deal with liquidity shocks. We uncover the possibility of an inefficient liquidity squeeze equilibrium. Agents typically choose to build smaller liquidity buffers when they expect cheap funding....

Persistent link: https://www.econbiz.de/10011210514