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The Case for a Long-Run Inflation Target of Four Percent

Ball, Laurence - 2014

Many central banks target an inflation rate near two percent. This essay argues that policymakers would do better to target four percent inflation. A four percent target would ease the constraints on monetary policy arising from the zero bound on interest rates, with the result that economic...

Persistent link: https://www.econbiz.de/10013050668

Output Gap Uncertainty and Real-Time Monetary Policy

Grigoli, Francesco - 2015

Output gap estimates are subject to a wide range of uncertainty owing to data revisions and the difficulty in distinguishing between cycle and trend in real time. This is important given the central role in monetary policy of assessments of economic activity relative to capacity. We show that...

Persistent link: https://www.econbiz.de/10013027622

Optimal Liquidity and Economic Stability

Han, Linghui - 2012

attention was paid to the potential spillover of excess liquidity. This paper suggests a notional level of "optimal" liquidity …

Persistent link: https://www.econbiz.de/10013102270

Global Liquidity Transmission to Emerging Market Economies, and Their Policy Responses

Choi, Woon Gyu - 2017

This paper distills and identifies global liquidity (GL) momenta from the macro-financial data of advanced economies … factor-augmented VAR, we investigate responses of emerging market economies (EMEs) to GL shocks. A policy-driven liquidity …

Persistent link: https://www.econbiz.de/10012942347

Monetary Policy Transmission and Financial Stability in a LIC : The Case of Bangladesh

Rafiq, Sohrab - 2016

This paper explores how monetary policy affects the real economy and its efficacy in promoting financial stability in a large low income country. This paper shows that monetary policy modestly impacts real economic activity and inflation via the bank lending and financial accelerator channels....

Persistent link: https://www.econbiz.de/10013002148

The Costs of Macroprudential Deleveraging in a Liquidity Trap

Chen, Jiaqian - 2020

We examine the effects of various borrower-based macroprudential tools in a New Keynesian environment where both real and nominal interest rates are low. Our model features long-term debt, housing transaction costs and a zero-lower bound constraint on policy rates. We find that the long-term...

Persistent link: https://www.econbiz.de/10012828224

The Impact of Unconventional Monetary Policy Measures by the Systemic Four on Global Liquidity and Monetary Conditions

Korniyenko, Yevgeniya - 2016

States, the United Kingdom, Euro area and Japan-the Systemic Four-on global monetary and liquidity conditions. Overall, the … countries on these conditions in other countries. UMPMs of the Bank of Japan have positive association with global liquidity but …

Persistent link: https://www.econbiz.de/10012996076

Wage-Price Dynamics and Structural Reforms in Japan

Porcellacchia, Davide - 2016

Structural reforms in the liquidity trap need not be deflationary. This paper develops a simple framework to study the …

Persistent link: https://www.econbiz.de/10012996094

Scarcity Effects of Quantitative Easing on Market Liquidity : Evidence from the Japanese Government Bond Market

Han, Fei - 2018

Quantitative easing could improve market liquidity through many channels such as relaxing bank funding constraints …, increasing risk appetite, and facilitating trades. However, it can also reduce market liquidity when the increase in the central …) effects of the Bank of Japan (BOJ)'s JGB purchases on market liquidity. Moreover, we also find evidence that such scarcity …

Persistent link: https://www.econbiz.de/10012913879

Liquidity Ratios as Monetary Policy Tools : Some Historical Lessons for Macroprudential Policy

Monnet, Eric - 2019

on numerous historical documents, we show that liquidity ratios similar to the Liquidity Coverage Ratio (LCR) were … mechanisms described by contemporary central bankers, in which an increase in the liquidity ratio has contractionary effects …

Persistent link: https://www.econbiz.de/10012863975