Similar Search Results

Amador, Manuel; Bianchi, Javier - National Bureau of Economic Research - 2023

drops can be a useful stabilization tool during a liquidity trap. With commitment, even with balance sheet constraints …

Persistent link: https://www.econbiz.de/10014247967

Monetary Exchange in Over-the-Counter Markets : A Theory of Speculative Bubbles, the Fed Model, and Self-fulfilling Liquidity Crises

Lagos, Ricardo - 2015

anomalous. The theory also exhibits rational expectations equilibria with recurring belief driven events that resemble liquidity … prices and standard measures of financial liquidity, such as bid-ask spreads, trade volume, and the incentives of dealers to …. The theory predicts that asset prices carry a speculative premium that reflects the asset's marketability and depends on …

Persistent link: https://www.econbiz.de/10012457141

Sticky Discount Rates

Fukui, Masao; Gormsen, Niels; Huber, Kilian - National Bureau of Economic Research - 2024

We show that firms' nominal required returns to capital (i.e., their discount rates) are sticky with respect to expected inflation. Such nominally sticky discount rates imply that increases in expected inflation directly lower firms' real discount rates and thereby raise real investment. We...

Persistent link: https://www.econbiz.de/10014512092

On Digital Currencies

Uhlig, Harald - National Bureau of Economic Research - 2024

I discuss private and central-bank-issued digital currencies, summarizing my prior research. I argue that prices of private digital currencies such as bitcoin follow random walks or, more generally, risk-adjusted martingales. For central bank digital currencies, I argue that they enhance the...

Persistent link: https://www.econbiz.de/10014486250

A Monetary Model of Bilateral Over-the-Counter Markets

Lagos, Ricardo - 2018

on asset prices and financial liquidity. The theory predicts asset prices carry a speculative premium that reflects the … asset's marketability and depends on monetary policy and the market microstructure where it is traded. These liquidity …

Persistent link: https://www.econbiz.de/10012480890

Sequential Search for Corporate Bonds

Kargar, Mahyar; Lester, Benjamin; Plante, Sébastien; … - National Bureau of Economic Research - 2023

In over-the-counter (OTC) markets, customers search for counterparties. Little is known about this process, however, because existing data is comprised of transaction records, which are only informative about the end of a successful search. Leveraging data from the leading trading platform for...

Persistent link: https://www.econbiz.de/10014437035

Crises and Liquidity in Over-the-Counter Markets

Lagos, Ricardo - 2009

We study the efficiency of dealers' liquidity provision and the desirability of policy intervention in over …-the-counter (OTC) markets during crises. Our theory emphasizes two key frictions in OTC markets: finding counterparties takes time, and …' asset demands that lasts until a random recovery time. In this context, dealers can provide liquidity to outside investors …

Persistent link: https://www.econbiz.de/10012463235

Central Banks, Stock Markets, and the Real Economy

Caballero, Ricardo J.; Simsek, Alp - National Bureau of Economic Research - 2024

This article summarizes empirical research on the interaction between monetary policy and asset markets, and reviews our previous theoretical work that captures these interactions. We present a concise model in which monetary policy impacts the aggregate asset price, which in turn influences...

Persistent link: https://www.econbiz.de/10014468253

Estimating the Effects of Political Pressure on the Fed : A Narrative Approach with New Data

Drechsel, Thomas - National Bureau of Economic Research - 2024

This paper combines new data and a narrative approach to identify shocks to political pressure on the Federal Reserve. From archival records, I build a data set of personal interactions between U.S. Presidents and Fed officials between 1933 and 2016. Since personal interactions do not...

Persistent link: https://www.econbiz.de/10014544739

Monetary Policy Wedges and the Long-term Liabilities of Households and Firms

Binsbergen, Jules H. van; Grotteria, Marco - National Bureau of Economic Research - 2024

We examine the transmission of monetary policy shocks to the long-duration liabilities of households and firms using high-frequency variation in 10-year swap rates around FOMC announcements. We find that four weeks after the announcement mortgage rates move one-for-one with 10-year swap rates,...

Persistent link: https://www.econbiz.de/10014486229

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