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A note concerning government bond yields

Akram, Tanweer - 2020

This paper relates Keynes's discussions of money, the state theory of money, financial markets, investors' expectations, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Keynes argued that the central bank can influence the...

Persistent link: https://www.econbiz.de/10012610205

Default-Risky Bond Prices with Jumps, Liquidity Risk and Heterogeneous Investors

Jeanblanc, Monique; Valchev, Stoyan - Institut für Schweizerisches Bankwesen <Zürich>; … - 2004

This paper develops a default-risky bond pricing model, which assumes that the default intensity is driven by a Markov chain and which accounts for default and liquidity risk. A representation of the bond price dynamics, which separates three different types of risk, was obtained. Introducing...

Persistent link: https://www.econbiz.de/10005858310

Tests of ex ante versus ex post theories of collateral using private and public information

Berger, Allen N.; Frame, W. Scott; Ioannidou, Vasso - 2010

Collateral is a widely used, but not well understood, debt-contracting feature. Two broad strands of theoretical … literature explain collateral as arising from the existence of either ex ante private information or ex post incentive problems … ex post theories of collateral are empirically dominant although the ex ante theories are also valid for customers with …

Persistent link: https://www.econbiz.de/10010292349

Endogenous money and the natural rate of interest: The reemergence of liquidity preference and animal spirits in the post-Keynesian theory of capital markets

Pilkington, Philip - 2014

Since the beginning of the fall of monetarism in the mid-1980s, mainstream macroeconomics has incorporated many of the principles of post-Keynesian endogenous money theory. This paper argues that the most important critical component of post-Keynesian monetary theory today is its rejection of...

Persistent link: https://www.econbiz.de/10010513071

Japan's liquidity trap

Akram, Tanweer - 2016

Japan has experienced stagnation, deflation, and low interest rates for decades. It is caught in a liquidity trap. This paper examines Japan's liquidity trap in light of the structure and performance of the country's economy since the onset of stagnation. It also analyzes the country's liquidity...

Persistent link: https://www.econbiz.de/10011784652

On the negatives of negative interest rates and the positives of exemption thresholds

Berentsen, Aleksander; van Buggenum, Hugo; Ruprecht, Romina - 2020

Major central banks remunerate reserves at negative interest rates and it is increasingly likely that they will keep rates negative for many more years. To study the long run implications of negative rates, we construct a dynamic general equilibrium model with commercial banks funding investment...

Persistent link: https://www.econbiz.de/10012420685

The Tyranny of the Tenths. The Rise and Gradual Fall of Forward Guidance in Sweden 2007-2018

Andersson, Fredrik N. G.; Jonung, Lars - 2019

This paper examines the Swedish experience of forward guidance 2007-2018. We focus on three interrelated issues: first, the effects of forward guidance on the discussion within the Board of Directors of the Riksbank, second, on the communication between the Riksbank and the public, and third, on...

Persistent link: https://www.econbiz.de/10013208855

Lessons from the Swedish Experience with Negative Central Bank Rates

Andersson, Fredrik N. G.; Jonung, Lars - 2020

Negative interest rates were once seen as impossible outside the realm of economic theory. However, several central banks have recently adopted negative policy rates. The Federal Reserve is coming under increasing pressure to follow suit in the wake of the coronavirus crisis. This paper...

Persistent link: https://www.econbiz.de/10013208878

Knapp's 'State Theory of Money' and its reception in German academic discourse

Ehnts, Dirk H. - 2019

In 1905, Georg Friedrich Knapp published The State Theory of Money in his native German, claiming that money is a "creature of law" and not connected to metals via some intrinsic value. When the English translation appeared in 1924, apparently at the wishes of John Maynard Keynes, the German...

Persistent link: https://www.econbiz.de/10011984407

Entrepreneurial finance, home equity, and monetary policy

Jackson, Paul; Madison, Florian - 2019

housing is accepted as collateral. A calibration to the U.S. economy supports the theoretical results and provides novel …

Persistent link: https://www.econbiz.de/10011993815