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The effect of the term auction facility on the London inter-bank offered rate

McAndrews, James Joseph (contributor); … - 2008

This paper examines the effects of the Federal Reserve’s Term Auction Facility (TAF) on the London Inter-Bank Offered …

Persistent link: https://www.econbiz.de/10003781580

Central bank transparency and nonlinear learning dynamics

Eusepi, Stefano (contributor) - 2008

Central bank communication plays an important role in shaping market participants’ expectations. This paper studies a … shows that agents’ learning and the dynamics of the economy are heavily affected by central bank transparency about its … policy rule. A central bank that does not communicate its rule can induce “learning equilibria” in which the economy …

Persistent link: https://www.econbiz.de/10003781685

Stabilizing expectations under monetary and fiscal policy coordination

Eusepi, Stefano (contributor); Preston, Bruce (contributor) - 2008

This paper analyzes how the formation of expectations constrains monetary and fiscal policy design. Economic agents have imperfect knowledge about the economic environment and the policy regime in place. Households and firms learn about the policy regime using historical data. Regime uncertainty...

Persistent link: https://www.econbiz.de/10003781690

Fiscal multipliers and policy coordination

Eggertsson, Gauti B. (contributor) - 2006

Persistent link: https://www.econbiz.de/10003314958

Monetary regime change and business cycles

Cúrdia, Vasco (contributor); Finocchiaro, Daria (contributor) - 2007

Persistent link: https://www.econbiz.de/10003522833

Optimal interest rate rules and inflation stabilization versus price-level stabilization

Giannoni, Marc Paolo - 2012

This paper compares the properties of interest rate rules such as simple Taylor rules and rules that respond to price-level fluctuations - called Wicksellian rules - in a basic forward-looking model. By introducing appropriate history dependence in policy, Wicksellian rules perform better than...

Persistent link: https://www.econbiz.de/10009522769

An interest rate rule to uniquely implement the optimal equilibrium in a liquidity trap

Duarte, Fernando; Zabai, Anna - 2015

We propose a new interest rate rule that implements the optimal equilibrium and eliminates all indeterminacy in a canonical New Keynesian model in which the zero lower bound on nominal interest rates (ZLB) is binding. The rule commits to zero nominal interest rates for a length of time that...

Persistent link: https://www.econbiz.de/10011346620

Segregated balance accounts

Garratt, Rod; Martin, Antoine; McAndrews, James Joseph; … - 2015

accounts that could allow any bank to compete for money market funds. Because of increased competition, the rates paid on …

Persistent link: https://www.econbiz.de/10010528292

Federal reserve tools for managing rates and reserves

Martin, Antoine; McAndrews, James Joseph; Palida, Ali; … - 2013

Monetary policy measures taken by the Federal Reserve as a response to the 2007-09 financial crisis and subsequent economic conditions led to a large increase in the level of outstanding reserves. The Federal Open Market Committee (FOMC) has a range of tools to control short-term market rates in...

Persistent link: https://www.econbiz.de/10010201212

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