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Macroeconomic effects of a government overdraft on its central bank account

Khemraj, Tarron - 2024

, allowing for the auctioning of Treasury bills to create the liquidity reflux necessary to refill the account. This paper …

Persistent link: https://www.econbiz.de/10014531238

Fiscal reform to benefit state and local governments : the modern money theory approach

Wray, L. Randall - 2019

This paper will present the Modern Money Theory approach to government finance. In short, a national government that chooses its own money of account, imposes a tax in that money of account, and issues currency in that money of account cannot face a financial constraint. It can make all payments...

Persistent link: https://www.econbiz.de/10012102465

Has Japan been following Modern Money Theory without recognizing it? : no! and yes

Wray, L. Randall; Nersisyan, Yeva - 2021

Modern Money Theory (MMT) economists have used Japan as an example of a country that demonstrates that high deficits … really spend tax revenue or borrow in their own currency-with Japan serving as an example of a country that does not face … financial budget constraints as normally defined. In this paper we evaluate whether Japan is the poster child of MMT and argue …

Persistent link: https://www.econbiz.de/10012432238

The simple geometry of transmission and stabilization in closed and open economies

Corsetti, Giancarlo (contributor); … - 2005

"This paper provides an introduction to the recent literature on macroeconomic stabilization in closed and open economies. We present a stylized theoretical framework, illustrating its main properties with the help of an intuitive graphical apparatus. Among the issues we discuss are optimal...

Persistent link: https://www.econbiz.de/10002772730

Resolving troubled systemically important cross-border financial institutions : is a new corporate organizational form required?

Cumming, Christine M.; Eisenbeis, Robert A. - 2010

This paper explores the advantages of a new financial charter for large, complex, internationally active financial institutions that would address the corporate governance challenges of such organizations, including incentive problems in risk decisions and the complicated corporate and...

Persistent link: https://www.econbiz.de/10008657240

Financial stability considerations for monetary policy : theoretical mechanisms

Ajello, Andrea; Boyarchenko, Nina; Gourio, François; … - 2022

This paper reviews the theoretical literature at the intersection of macroeconomics and finance to draw lessons on the connection between vulnerabilities in the financial system and the macroeconomy, and on how monetary policy affects that connection. This literature finds that financial...

Persistent link: https://www.econbiz.de/10013161877

Financial stability considerations for monetary policy : empirical evidence and challenges

Boyarchenko, Nina; Favara, Giovanni; Schularick, Moritz - 2022

This paper reviews literature on the empirical relationship between vulnerabilities in the financial system and the macroeconomy, and how monetary policy affects that connection. Financial vulnerabilities build up over time, with both risk appetite and risk taking rising during economic...

Persistent link: https://www.econbiz.de/10013161882

ECB monetary operations and the interbank repo market

Dunne, Peter G.; Fleming, Michael J.; Zholos, Andrey - 2013

We examine the relationship between monetary policy operations and interbank borrowing and lending of funds using sovereign bonds as collateral. We first establish that, in the precrisis period, there are important but rather weak relations between these funding sources and that this...

Persistent link: https://www.econbiz.de/10010222894

Modern Money Theory on fiscal and monetary policies : empirics, theory and policymaking

Tymoigne, Éric - 2024

Drumetz and Pfister (2021) make several claims about the inadequacy and fallacies of Modern Money Theory (MMT) and conclude that MMT is nothing more than a political manifesto; there are no theoretical and empirical foundations behind it. This paper addresses this last point by focusing on the...

Persistent link: https://www.econbiz.de/10015135050

Fiscal and monetary policy in an SFC model of the Italian economy

Zezza, Francesco - 2024

Following the Great Financial Crisis of 2008-9, there has been a shift in mainstream economic policy modeling toward "realism," with dynamic stochastic general equilibrium (DSGE) models partly diverging from the representative agent framework, and large-scale, New-Keynesian structural models...

Persistent link: https://www.econbiz.de/10015135052