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Near-money premiums, monetary policy, and the integration of money markets : lessons from deregulation
Carlson, Mark; Wheelock, David C. - 2016 - Draft: June 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/10011578733
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The costs and benefits of liquidity regulations : lessons from an idle monetary policy tool
Curfman, Christopher J.; Kandrac, John - 2019
liquidity regulation. Our identification strategy uses a regression kink design that relies on the variation in a marginal high …
Persistent link: https://www.econbiz.de/10012181216
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Expectations-driven liquidity traps : implications for monetary and fiscal policy
Nakata, Taisuke; Schmidt, Sebastian - 2019 - This draft: June 2019
We study optimal monetary and fiscal policy in a New Keynesian model where occasional declines in agents' confidence give rise to persistent liquidity trap episodes. There is no straightforward recipe for enhancing welfare in this economy. Raising the inflation target or appointing an...
Persistent link: https://www.econbiz.de/10012181947
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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 risky steady state and the interest rate lower bound
Hills, Timothy S.; Nakata, Taisuke; Schmidt, Sebastian - 2016 - This draft: January 2016
Even when the policy rate is currently not constrained by its effective lower bound (ELB), the possibility that the policy rate will become constrained in the future lowers today's inflation by creating tail risk in future inflation and thus reducing expected inflation. In an empirically rich...
Persistent link: https://www.econbiz.de/10011499709
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The impact of unconventional monetary policy on firm financing constraints : evidence from the maturity extension program
Foley-Fisher, Nathan; Ramcharan, Rodney; Yu, Edison - 2016
This paper investigates the impact of unconventional monetary policy on firm financial constraints. It focuses on the Federal Reserve's maturity extension program (MEP), intended to lower longer-term rates and flatten the yield curve by reducing the supply of long-term government debt....
Persistent link: https://www.econbiz.de/10011500206
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Monetary policy, real activity, and credit spreads : evidence from Bayesian proxy SVARs
Caldara, Dario; Herbst, Edward P. - 2016
Bayesian framework to estimate proxy structural vector autoregressions (SVARs) in which monetary policy shocks are identified … policy shocks are key drivers of fluctuations in industrial output and corporate credit spreads, explaining about 20 percent … this endogenous reaction induces an attenuation bias in the response of all variables to monetary shocks …
Persistent link: https://www.econbiz.de/10011500415
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Gradualism and liquidity traps
Nakata, Taisuke; Schmidt, Sebastian - 2016 - This draft: November 2016
increases the welfare of an economy in which large contractionary shocks occasionally force the central bank to lower the policy …
Persistent link: https://www.econbiz.de/10011578953
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Monetary policy implementation and private repo displacement : evidence from the overnight reverse repurchase facility
Anderson, Alyssa G.; Kandrac, John - 2016
In recent years, the scale and scope of major central banks' intervention in financial markets has expanded in unprecedented ways. In this paper, we demonstrate how monetary policy implementation that relies on such intervention in financial markets can displace private transactions....
Persistent link: https://www.econbiz.de/10011578994
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From Taylor's rule to Bernanke's temporary price level targeting
Hebden, James; López-Salido, José David - 2018
Bernanke's strategies for integrating forward guidance into conventional instrument rules anticipate that effective lower bound (ELB) episodes may become part a regular occurrence and that monetary policy should recognize this likelihood (Bernanke (2017a); Bernanke (2017b)). Bernanke's first...
Persistent link: https://www.econbiz.de/10012016089