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Sticky Prices, Coordination and Enforcement
Driscoll, John C.; Ito, Harumi - 2003
Price-setting models with monopolistic competition and costs of changing prices exhibit coordination failure: in response to a monetary policy shock, individual agents lack incentives to change prices even when it would be Pareto-improving if all agents did so. The potential welfare gains are in...
Persistent link: https://www.econbiz.de/10014075823
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Distributional Considerations for Monetary Policy Strategy
Feiveson, Laura; Gornemann, Nils; Hotchkiss, Julie L.; … - 2020
We show that makeup strategies, such as average inflation targeting and price-level targeting, can be more effective than a flexible inflation targeting strategy in overcoming the obstacles created by the effective lower bound in a heterogeneous agent New Keynesian (HANK) model. We also show...
Persistent link: https://www.econbiz.de/10014094143
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Global Stablecoins : Monetary Policy Implementation Considerations from the U.S. Perspective
Malloy, Matthew; Lowe, David - 2021
This note explores the potential effects of the widespread adoption of a global stablecoin (GSC) on key aggregate financial sector balance sheets in the United States. To do this, we map out cash flows of GSC transactions among financial sector entities using a stylized set of 't-accounts'. By...
Persistent link: https://www.econbiz.de/10013231947
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Near-Money Premiums, Monetary Policy, and the Integration of Money Markets : Lessons from Deregulation
Carlson, Mark A. - 2016
The 1960s and 1970s witnessed rapid growth in the markets for new money market instruments, such as negotiable certificates of deposit (CDs) and Eurodollar deposits, as banks and investors sought ways around various regulations affecting funding markets. In this paper, we investigate the impacts...
Persistent link: https://www.econbiz.de/10013210453
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Incorporating Judgement in Fan Charts
Österholm, Pär - 2006
Within a decision-making group, such as the monetary-policy committee of a central bank, group members often hold differing views about the future of key economic variables. Such differences of opinion can be thought of as reflecting differing sets of judgement. This paper suggests modelling...
Persistent link: https://www.econbiz.de/10014053949
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Words Speak as Loudly as Actions : Central Bank Communication and the Response of Equity Prices to Macroeconomic Announcements
Gardner, Benjamin; Scotti, Chiara; Vega, Clara - 2022
While the literature has already widely documented the effects of macroeconomic news announcements on asset prices, as well as their asymmetric impact during good and bad times, we focus on the reaction to news based on the description of the state of the economy as painted by the Federal Open...
Persistent link: https://www.econbiz.de/10013309615
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Global Stablecoins : Monetary Policy Implementation Considerations from the U.S. Perspective
Lowe, David; Malloy, Matthew - 2021
This note explores the potential effects of the widespread adoption of a global stablecoin (GSC) on key aggregate financial sector balance sheets in the United States. To do this, we map out cash flows of GSC transactions among financial sector entities using a stylized set of 't-accounts'. By...
Persistent link: https://www.econbiz.de/10014351827
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The Covid-19 Crisis and the Federal Reserve'S Policy Response
Clarida, Richard; Duygan-Bump, Burcu; Scotti, Chiara - 2021
facilities to support the flow of credit to households and businesses. These measures, taken together, provided crucial support …
Persistent link: https://www.econbiz.de/10014351842
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The Effect of Central Bank Liquidity Injections on Bank Credit Supply
Carpinelli, Luisa; Crosignani, Matteo - 2017
We study the effectiveness of central bank liquidity injections in restoring bank credit supply following a wholesale … funding dry-up. We combine borrower-level data from the Italian credit registry with bank security-level holdings and analyze … that expands eligible collateral, we show that banks more affected by the dry-up use this facility to restore their credit …
Persistent link: https://www.econbiz.de/10014352393
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The Macroeconomic Effects of the Federal Reserve's Unconventional Monetary Policies
Engen, Eric M.; Laubach, Thomas; Reifschneider, David - 2021
After reaching the effective lower bound for the federal funds rate in late 2008, the Federal Reserve turned to two unconventional policy tools--quantitative easing and increasingly explicit and forward-leaning guidance for the future path of the federal funds rate--in order to provide...
Persistent link: https://www.econbiz.de/10014087877