. We show how a central bank without pre-commitments engineers an unexpected monetary expansion to increase TFP in the … medium run. In the event of a cost-push shock, the central bank leans with the wind to increase demand and reduce …

default probability, showing that it decreases with central bank bond-holdings. Calibrating the model to Germany and Italy, we …

central bank a reason to inflate for redistributive purposes, because debtors have a higher marginal utility than creditors …. This inflationary motive fades over time as bonds mature and the central bank pursues a deflationary path to raise bond …

We analyze the impact of introducing a central bank-issued digital currency (CBDC) on the operational framework of … frictional interbank market, a central bank with deposit and lending facilities, and household preferences for different liquid …" has a rather small effect on bank lending to the real economy, and hence on aggregate investment and GDP. This result …