Similar Search Results

Time-consistent management of a liquidity trap with government debt

Matveev, Dmitry - 2018

government to temporarily reduce debt. This decline stimulates output, which is inefficiently low during liquidity traps, by …

Persistent link: https://www.econbiz.de/10011881785

Emergency liquidity facilities, signalling and funding Costs

Gauthier, Céline; Lehar, Alfred; Pérez Saiz, Héctor; … - 2015

empirically test the predictions of a new signalling model that offers a rationale for offering two different liquidity facilities … risky than banks that accessed the DW. Our results can contribute to a better design of liquidity facilities during a …

Persistent link: https://www.econbiz.de/10011408663

Endogenous liquidity and capital reallocation

Cui, Wei; Wright, Randall D.; Zhu, Yu - 2022 - Last updated: June 17, 2022

liquidity frictions. We distinguish between full and partial sales (one firm gets all or some of the other's capital). Both …, more partial sales occur when liquidity is tight. Quantitatively, we find significant steady-state and business …

Persistent link: https://www.econbiz.de/10013256540

Central bank haircut policy

Chapman, James; Chiu, Jonathan; Molico, Miguel - 2010

that a lending facility provides a bundle of two types of insurance: insurance against liquidity risk as well as insurance … liquidity constraints of agents on one hand, and increasing potential inflation risk and distorting the portfolio choices of … agents who actually need liquidity. Finally, for an unexpected drop in the haircut, the central bank can be more aggressive …

Persistent link: https://www.econbiz.de/10008659919

Monetary commitment and the level of public debt

Gnocchi, Stefano; Lambertini, Luisa - 2016

We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities. Fiscal decisions lack commitment but are Markovperfect. Monetary commitment to an interest...

Persistent link: https://www.econbiz.de/10011431600

Monetary policy, trends in real interest rates and depressed demand

Beaudry, Paul; Meh, Césaire Assah - 2021 - Last updated: August 16, 2021

Over the last few decades, real interest rates have trended downward in many countries. The most common explanation is that this reflects depressed demand due to demographic, technological and other real factors such as income inequality. In this paper we explore the claim that these trends may...

Persistent link: https://www.econbiz.de/10012546126

Discount rates, debt maturity and the fiscal theory

Corhay, Alexandre; Kind, Thilo; Kung, Howard; Morales, … - 2021 - Last updated: November 26, 2021

This paper examines how the transmission of government portfolio risk arising from maturity operations depends on the stance of monetary/fiscal policy. Accounting for risk premia in the fiscal theory allows the government portfolio to affect the expected inflation, even in a frictionless...

Persistent link: https://www.econbiz.de/10012670322

Fiscal and monetary stabilization policy at the zero lower bound : consequences of limited foresight

Woodford, Michael; Xie, Yinxi - 2021 - Last updated: October 18, 2021

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness of conventional monetary policy, under an assumption of bounded rationality. In particular, we reconsider the potential role of...

Persistent link: https://www.econbiz.de/10012650211

The side effects of safe asset creation

Acharya, Sushant; Dogra, Keshav - 2021 - Last updated: July 14, 2021

We present an incomplete markets model to understand the costs and benefits of increasing government debt when an increased demand for safety pushes the natural rate of interest below zero. A higher demand for safe assets causes the ZLB to bind, increasing unemployment. Higher government debt...

Persistent link: https://www.econbiz.de/10012591689

(Optimal) monetary policy with and without debt

Chafwehé, Boris; Oikonomou, Rigas; Priftis, Romanos; … - 2021 - Last updated: January 26, 2021

the liquidity trap. The optimal policy is isomorphic to Leeper's (1991) "passive monetary/active fiscal policy" regime in …

Persistent link: https://www.econbiz.de/10012420260

1
2
3
4
5
6
7
8
9
10
Next
Last