Similar Search Results

The Role of Bank Lending Tightening on Corporate Bond Issuance in the Eurozone

Kaya, Orcun - 2017

The availability of bank lending and corporate bond markets underwent a drastic change in the eurozone with the break … lending tightening on non-financial corporate (NFC) bond issuance in the eurozone. By utilizing a unique data set provided by … reporting considerable tightening on loans leads to around a 7% increase in firms' bond issuance in the eurozone. The …

Persistent link: https://www.econbiz.de/10012973832

Effects of state-dependent forward guidance, large-scale asset purchases and fiscal stimulus in a low-interest-rate environment

Coenen, Günter; Montes-Galdón, Carlos; Smets, Frank - 2020

We study the incidence and severity of lower-bound episodes and the efficacy of three types of state-dependent policies - forward guidance about the future path of interest rates, large-scale asset purchases and spending-based fiscal stimulus - in ameliorating the adverse consequences stemming...

Persistent link: https://www.econbiz.de/10012149255

Risks to price stability, the zero lower bound and forward guidance: A real-time assessment

Coenen, Günter; Warne, Anders - Center for Financial Studies - 2013

This paper employs stochastic simulations of the New Area-Wide Model - microfounded open-economy model developed at the ECB - to investigate the consequences of the zero lower bound on nominal interest rates for the evolution of risks to price stability in the euro area during the recent...

Persistent link: https://www.econbiz.de/10010986359

A Small Estimated Euro Area Model with Rational Expectations and Nominal Rigidities

Coenen, Guenter; Wieland, Volker - Center for Financial Studies - 2003

In this paper we estimate a small model of the euro area to be used as a laboratory for evaluating the performance of alternative monetary policy strategies. We start with the relationship between output and inflation and investigate the fit of the nominal wage contracting model due to Taylor...

Persistent link: https://www.econbiz.de/10010986466

Insurance policies for monetary policy in the Euro area

Küster, Keith; Wieland, Volker - Center for Financial Studies - 2005

In this paper, we examine the cost of insurance against model uncertainty for the Euro area considering four alternative reference models, all of which are used for policy-analysis at the ECB.We find that maximal insurance across this model range in terms of aMinimax policy comes at moderate...

Persistent link: https://www.econbiz.de/10010986477

Core inflation in the Euro area: Evidence from the structural VAR approach

Hahn, Elke - Center for Financial Studies - 2002

Against the difficult background of analysing aggregated data in this paper core inflation in the euro area is estimated by means of the structural vector autoregressive approach. We demonstrate that the HICP sometimes seems to be a misleading indicator for monetary policy in the euro area. We...

Persistent link: https://www.econbiz.de/10010958586

Equal size, equal role? Interest rate interdependence between the Euro area and the United States

Ehrmann, Michael; Fratzscher, Marcel - Center for Financial Studies - 2003

This paper investigates whether the degree and the nature of economic and monetary policy interdependence between the United States and the euro area have changed with the advent of EMU. Using real-time data, it addresses this issue from the perspective of financial markets by analysing the...

Persistent link: https://www.econbiz.de/10010958641

Data Uncertainty and the Role of Money as an Information Variable for Monetary Policy

Coenen, Guenter; Levin, Andrew; Wieland, Volker - Center for Financial Studies - 2003

In this study, we perform a quantitative assessment of the role of money as an indicator variable for monetary policy in the euro area. We document the magnitude of revisions to euro area-wide data on output, prices, and money, and find that monetary aggregates have a potentially significant...

Persistent link: https://www.econbiz.de/10010958671

Stochastic optimization and worst-case analysis in monetary policy design

Rustem, Berc; Wieland, Volker; Zakovic, Stan - Center for Financial Studies - 2005

In this paper we compare expected loss minimization to worst-case or minimax analysis in the design of simple Taylor-style rules for monetary policy using a small model estimated for the euro area by Orphanides and Wieland (2000). We find that rules optimized under a minimax objective in the...

Persistent link: https://www.econbiz.de/10010958728

The role of bank lending tightening on corporate bond issuance in the eurozone

Kaya, Orcun; Wang, Lulu - Center for Financial Studies - 2014

eurozone. By utilizing a unique data set provided by the ECB Bank Lending Survey, we capture the pure credit supply effect on … banks reporting considerable tightening on loans leads to around a 7% increase in firms' bond issuance in the eurozone … too. Furthermore, the impact of bank credit tightening on firms' bond issuance is particularly observable in core eurozone …

Persistent link: https://www.econbiz.de/10010958784