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We examine global dynamics under infinite-horizon learning in New Keynesian models where monetary policy practices either pricelevel or nominal GDP targeting and compare these regimes to inflation targeting. These interest-rate rules are subject to the zero lower bound. Robustness of the three...
Persistent link: https://www.econbiz.de/10010818984
We examine global dynamics under infinite-horizon learning in New Keynesian models where the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), the intended steady state is locally but not globally stable. Unstable deflationary paths emerge after...
Persistent link: https://www.econbiz.de/10010584391
We examine global economic dynamics under infinite-horizon learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja, European Economic Review (2008), we find that under normal monetary and fiscal policy the intended...
Persistent link: https://www.econbiz.de/10008496440
. Under adaptive learning dynamics we find the additional possibility of a liquidity trap, in which the economy slips below … an aggressive money supply rule. Fiscal policy alone cannot push the economy out of the liquidity trap. However, raising … the threshold at which the money supply rule is employed can dislodge the economy from the liquidity trap and ensure a …
Persistent link: https://www.econbiz.de/10005190758
focus of the analyses is on continuity arrangements, operational stability, liquidity requirements, liquidity economising …
Persistent link: https://www.econbiz.de/10008774214
focus of the analyses is on liquidity requirements, settlement speed, gridlock situations, gridlock resolution methods …, liquidity economising, systemic risk and the impact of shocks on system performance as well as network analysis and modelling of …
Persistent link: https://www.econbiz.de/10008774230
We study the long standing issue of whether markets can supply banks with sufficient liquidity or whether markets … model of Holmström and Tirole (1998) on the supply of liquidity to firms. H&Ts original model analyses liquidity supply to … problems associated with transitory liquidity outflows, even absent any change in a bank's value. Our premise is that the scope …
Persistent link: https://www.econbiz.de/10005419679
This study utilises payment system data to analyse market participants’ liquidity usage and to trace interest rates … paid on overnight loans. Our aim is to examine how liquidity usage has changed during the years 2006–2/2011 and to combine …
Persistent link: https://www.econbiz.de/10009368523
systemic risks, to analyze liquidity usage, to test or develop new system structures, and to study participants’ behavior. The …
Persistent link: https://www.econbiz.de/10010584387
difference between marginal and minimum price for liquidity, when the ECB reformed its op-erational framework for monetary policy …, that when the central bank applies a quantity oriented liquidity policy, a positive tender spread may result from money …, the allotment uncertainty is shown to be significantly related to the amount of liquidity supplied in each operation …
Persistent link: https://www.econbiz.de/10005648928