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Money market rates and retail interest regulation in China : the disconnect between interbank and retail credit conditions
Porter, Nathaniel John; Xu, TengTeng - 2013
Interest rates in China are composed of a mix of both market-determined interest rates (interbank rates and bond yields), and regulated interest rates (retail lending and deposit rates), reflecting China's gradual process of interest rate liberalization. This paper investigates the main drivers...
Persistent link: https://www.econbiz.de/10009757286
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Monetary policy and cross-border interbank market fragmentation : lessons from the crisis
Blattner, Tobias S.; Swarbrick, Jonathan M. - 2020 - Last updated: August 27, 2020
We present a two-country model featuring risky lending and cross-border interbank market frictions. We find that (i) the strength of the financial accelerator, when applied to banks operating under uncertainty in an interbank market, will critically depend on the economic and financial structure...
Persistent link: https://www.econbiz.de/10012271646
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Bank leverage regulation and macroeconomic dynamics
Christensen, Ian; Meh, Césaire Assah; Moran, Kevin - 2011
This paper assesses the merits of countercyclical bank balance sheet regulation for the stabilization of financial and economic cycles and examines its interaction with monetary policy. The framework used is a dynamic stochastic general equilibrium model with banks and bank capital, in which...
Persistent link: https://www.econbiz.de/10009728167
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Household heterogeneity and the performance of monetary policy frameworks
Djeutem, Edouard; He, Mario; Reza, Abeer; Zhang, Yang - 2022 - Last updated: March 8, 2022
We compare the performance of alternative monetary policy frameworks (inflation targeting, average inflation targeting … additional source of societal welfare loss due to cyclical fluctuations in inequality on top of those from inflation and output …
Persistent link: https://www.econbiz.de/10013169230
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Managing GDP tail risk
Duprey, Thibaut; Ueberfeldt, Alexander - 2020 - Last updated: January 28, 2020
We propose a novel framework to analyze how policy-makers can manage risks to the median projection and risks specific to the tail of gross domestic product (GDP) growth. By combining a quantile regression of GDP growth with a vector autoregression, we show that monetary and macroprudential...
Persistent link: https://www.econbiz.de/10012154134
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Commodities and monetary policy : implications for inflation and price level targeting
Coletti, Donald; Lalonde, René; Masson, Paul R.; Muir, Dirk - 2012
We examine the relative ability of simple inflation targeting (IT) and price level targeting (PLT) monetary policy … rules to minimize both inflation variability and business cycle fluctuations in Canada for shocks that have important … persistent cost-push pressures in the economy leading to a significant deterioration in the inflation - output gap trade …
Persistent link: https://www.econbiz.de/10009546871
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Gazing at r-star : a hysteresis perspective
Beaudry, Paul; Kartashova, Katya; Meh, Césaire Assah - 2023 - Last updated: January 12, 2023
Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to...
Persistent link: https://www.econbiz.de/10013482643
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Central bank digital currency and transmission of monetary policy
Bhattarai, Saroj; Davoodalhosseini, Seyed Mohammadreza; … - 2024 - Last updated: July 25, 2024
How does the transmission of monetary policy change when a central bank digital currency (CBDC) is introduced in the economy? Do aspects of CBDC design, such as how substitutable it is with bank deposits and whether it is interest bearing, matter? We study these questions in a general...
Persistent link: https://www.econbiz.de/10015067114
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More money for some : the redistributive effects of open market operations
Bustamante, Christian - 2021 - Last updated: September 29, 2021
Using a general equilibrium search-theoretic model of money, I study the distributional effects of open market operations. In my model, heterogeneous agents trade bilaterally among themselves in a frictional market and save using cash and illiquid short-term nominal government bonds. Wealth...
Persistent link: https://www.econbiz.de/10012627938
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Regulatory requirements of banks and arbitrage in the post-crisis federal funds market
Garratt, Rod; Priazhkina, Sofia - 2022 - Last updated: November 28, 2022
This paper explains the nature of interest rates in the U.S. federal funds market after the 2007-09 financial crisis. We build a model of the over-the-counter lending market that incorporates new aspects of the financial system: abundance of liquidity, different regulatory standards for banks,...
Persistent link: https://www.econbiz.de/10013466133