, raising credit terms to their borrowers. The picture that emerges from these findings looks less like a traditional bank run …

minimize the length and severity of the recession, would require a stronger commitment to low interest rates for an extended …

demand reasons. In this environment, a central bank that cannot commit to monetary policy choices will ignore the insurance … aspect and follow a procyclical rather than the optimal countercyclical monetary policy. The central bank will also intervene … to solve these problems, we propose modifying the central bank's objective to (i) include state-contingent inflation …

This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of … the inflation rate the central bank should use if it wants to maximize economic stability. The paper first formalizes this … that a central bank that wants to achieve maximum stability of economic activity should use a price index that gives …

the ability of the central bank to alleviate the fiscal burden by influencing different terms in the government resource … seignorage is generated and subject to what constraints, (iii) whether central bank liabilities should count as public debt, (iv …) how central bank assets create income risk, and whether or not this threatens its solvency, and (v) how the central bank …

instrument of monetary policy. We show that by paying an appropriate rate on reserves, the central bank can pin the price level …

via contractions in credit and disruption in financial markets. Managing the size and composition of the central bank …