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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

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

Is a very high public debt a problem?

Leão, Pedro - 2015

This paper has two main objectives. The first is to propose a policy architecture that can prevent a very high public debt from resulting in a high tax burden, a government default, or inflation. The second objective is to show that government deficits do not face a financing problem. After...

Persistent link: https://www.econbiz.de/10011309513

Fiscal stabilization in the United States : lessons for monetary unions

Nikolov, Plamen; Pasimeni, Paolo - 2019

The debate about the use of fiscal instruments for macroeconomic stabilization has regained prominence in the aftermath of the Great Recession, and the experience of a monetary union equipped with fiscal shock absorbers, such as the United States, has often been a reference. This paper enhances...

Persistent link: https://www.econbiz.de/10011999069

Dealer financial conditions and lender-of-last-resort facilities

Acharya, Viral V.; Fleming, Michael J.; Hrung, Warren B.; … - 2014

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

Persistent link: https://www.econbiz.de/10010404154

Safety, liquidity, and the natural rate of interest

Del Negro, Marco; Giannone, Domenico; Giannoni, Marc Paolo - 2017

and liquidity has increased since the late 1990s, and to a lesser extent because economic growth has slowed. We reach this …

Persistent link: https://www.econbiz.de/10011647660

Fiscal foundations of inflation : imperfect knowledge

Eusepi, Stefano; Preston, Bruce - 2013

This paper proposes a theory of the fiscal foundations of inflation based on imperfect knowledge and learning. The theory is similar in spirit to, but distinct from, unpleasant monetarist arithmetic and the fiscal theory of the price level. Because the assumption of imperfect knowledge breaks...

Persistent link: https://www.econbiz.de/10010202656

Interbank market and central bank policy

Ahn, Jung-hyun; Bignon, Vincent; Breton, Régis; … - 2016

We develop a model in which financial intermediaries hold liquidity to protect themselves from shocks. Depending on … parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal … underinsurance against liquidity choice. The model therefore provides a unified framework for thinking, on the one hand, about policy …

Persistent link: https://www.econbiz.de/10011419845

The role of consumption substitutability in the international transmission of shocks

Tille, Cédric - 1999

Persistent link: https://www.econbiz.de/10001398156

Effective demand in the recent evolution of the US economy

López Gallardo, Julio; Reyes-Ortiz, Luis - 2011

We present strong empirical evidence favoring the role of effective demand in the US economy, in the spirit of Keynes and Kalecki. Our inference comes from a statistically well-specified VAR model constructed on a quarterly basis from 1980 to 2008. US output is our variable of interest, and it...

Persistent link: https://www.econbiz.de/10009153006