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Monetary policy pass-through with central bank digital currency

Jiang, Janet Hua; Zhu, Yu - 2021 - Last updated: March 9, 2021

This paper investigates how the introduction of an interest-bearing central bank digital currency (CBDC) that serves as a perfect substitute for bank deposits as an electronic means of payment affects monetary policy pass-through. When the deposit market is not fully competitive, the CBDC tends...

Persistent link: https://www.econbiz.de/10012488040

Unregulated lending, mortgage regulations and monetary policy

Emenogu, Ugochi; Peterson, Brian - 2022 - Last updated: June 27, 2022

Macroprudential policies are often aimed at the traditional banking sector while nondepository financial institutions or shadow banks have limited or no prudential regulations. This paper studies the macroeconomic impact of household-side macroprudential tightening in the presence of unregulated...

Persistent link: https://www.econbiz.de/10013264902

Quantitative easing and long-term yields in small open economies

Díez de los Ríos, Antonio; Shamloo, Maral - 2017

We compare the Federal Reserve's asset purchase programs with those implemented by the Bank of England and the Swedish Riksbank, and the Swiss National Bank’s reserve expansion program. We decompose government bond yields into (i) an expectations component, (ii) a global term premium and (iii)...

Persistent link: https://www.econbiz.de/10011684923

Financial stress, monetary policy, and economic activity

Li, Fuchun; St-Amant, Pierre - 2010

This paper examines empirically the impact of financial stress on the transmission of monetary policy shocks in Canada … stress conditions, the authors examine questions such as: Do contractionary and expansionary monetary policy shocks have … symmetric effects? Do financial stress conditions play a role as a nonlinear propagator of monetary policy shocks? Does monetary …

Persistent link: https://www.econbiz.de/10003981316

Macroprudential rules and monetary policy when financial frictions matter

Bailliu, Jeannine N.; Meh, Césaire Assah; Zhang, Yahong - 2012

market frictions and financial shocks as well as standard macroeconomic shocks. We estimate the model using Canadian data … on the nature of the shock where the benefits are larger in the presence of financial shocks that have broader effects on …

Persistent link: https://www.econbiz.de/10009501847

Estimating the demand for settlement balances in the Canadian large value transfer system

Zhang, Nellie - 2012

This paper applies a static model of an interest rate corridor to the Canadian data, and estimates the aggregate demand for central-bank settlement balances in the Large Value Transfer System (LVTS). The empirical specification controls for various calendar effects that have been shown to cause...

Persistent link: https://www.econbiz.de/10009539333

The welfare implications of fiscal dominance

De Resende, Carlos (contributor); Rebei, Nooman (contributor) - 2008

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of...

Persistent link: https://www.econbiz.de/10003772978

Financial intermediation, liquidity and inflation

Chiu, Jonathan (contributor); … - 2008

This paper develops a search-theoretic model to study the interaction between banking and monetary policy and how this interaction affects the allocation and welfare. Regarding how banking affects the welfare costs of inflation: First, we find that, with banking, inflation generates smaller...

Persistent link: https://www.econbiz.de/10003790575

Cross-country estimates of the degree of fiscal dominance and central bank independence

De Resende, Carlos (contributor) - 2007

This paper studies the interdependence between fiscal and monetary policies, and their joint role in the determination of the price level. The government is characterized by a long-run fiscal policy rule whereby a given fraction of the outstanding debt, say , is backed by the present discounted...

Persistent link: https://www.econbiz.de/10003484267

Endogenously segmented asset market in an inventory theoretic model of money demand

Chiu, Jonathan (contributor) - 2007

capture. Second, I show that the short run effects of money shocks in an exogenous segmentation model (such as the linear … segmentation model, the equilibrium response to money shocks is non-linear and non-monotonic. Moreover, for large money shocks …

Persistent link: https://www.econbiz.de/10003560555