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Price Level Risk and Some Long-Run Implications of Alternative Monetary Policy Strategies
Clouse, James A. - 2020
price level. The analysis compares the properties of optimal policy in regimes ranging from pure inflation targeting (IT …), to a form of weighted-average inflation targeting (WAIT), to pure price level targeting (PLT). Strategies such as WAIT …
Persistent link: https://www.econbiz.de/10014048722
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The costs and benefits of liquidity regulations : lessons from an idle monetary policy tool
Curfman, Christopher J.; Kandrac, John - 2019
We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high-quality liquid asset (HQLA) requirement around an...
Persistent link: https://www.econbiz.de/10012181216
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Monetary policy and bank equity values in a time of low and negative interest rates
Ampudia, Miguel; Heuvel, Skander van den - 2019
Does banks' exposure to interest rate risk change when interest rates are very low or even negative? Using a high-frequency event study methodology and intraday data, we find that the effect of surprise interest rate cuts announced by the ECB on European bank equity values - an effect that is...
Persistent link: https://www.econbiz.de/10012182094
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The Correlation Between Money and Output in the United Kingdom : Resolution of a Puzzle
Nelson, Edward - 2012
Friedman and Schwartz (1982) and Goodhart (1982) report a zero correlation between money growth and output growth in U.K. historical data. This finding is puzzling, as there is wide agreement that changes in monetary policy are frequently nonneutral in the short run and that the U.K. experience,...
Persistent link: https://www.econbiz.de/10013106773
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Volatility, Money Market Rates, and the Transmission of Monetary Policy
Carpenter, Seth B. - 2011
Central banks typically control an overnight interest rate as their policy tool, and the transmission of monetary policy happens through the relationship of this overnight rate to the rest of the yield curve. The expectations hypothesis, that longer-term rates should equal expected future...
Persistent link: https://www.econbiz.de/10013124991
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The Federal Reserve's Portfolio and its Effects on Mortgage Markets
Hancock, Diana - 2012
We provide an empirical analysis of the effects of the Federal Reserve's asset holdings on MBS yields and mortgage rates. We argue that understanding the particulars of the U.S. mortgage markets, particularly the linkages between the secondary and primary mortgage markets, is important. We find...
Persistent link: https://www.econbiz.de/10013106785
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The Federal Reserve's Large-Scale Asset Purchase Programs : Rationale and Effects
D'Amico, Stefania - 2013
We provide empirical estimates of the effect of large-scale asset purchase (LSAP)-style operations on longer-term U.S. Treasury yields within a framework that nests the alternative theoretical perspectives on LSAPs. As the principal channels through which LSAPs might matter for longer-term...
Persistent link: https://www.econbiz.de/10013088919
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The Fed’s “Ample-Reserves” Approach to Implementing Monetary Policy
Ihrig, Jane E. - 2020
We describe the Federal Reserve's (the Fed's) approach to implementing monetary policy in an ample-reserves regime. We use a stylized model to explain the factors the Fed considers and the tools it uses to ensure interest rate control when the quantity of reserves is ample. Then, we take a close...
Persistent link: https://www.econbiz.de/10012834052
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Inflation Targeting Under Imperfect Knowledge
Orphanides, Athanasios - 2007
A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are … essential. In this paper, we reexamine the role of key elements of the inflation targeting framework towards this end, in the … that incorporates three key characteristics of inflation targeting: transparency, commitment to maintaining price stability …
Persistent link: https://www.econbiz.de/10012731667
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Navigating Constraints : The Evolution of Federal Reserve Monetary Policy, 1935-59
Carlson, Mark A. - 2014
government spending and rising inflation led to the Fed-Treasury Accord of March 1951. Following the Accord, the external …
Persistent link: https://www.econbiz.de/10013051876