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liquidity beyond the required reserves was a milestone in the history of central banking. This shift was accompanied by …
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We study the effects of the US Federal Reserve's large-scale asset purchase programs during 2008-2014 on bank liquidity … creation. Banks create liquidity when they transform the liquid reserves resulted from quantitative easing into illiquid assets …. As the composition of banks' loan portfolio affects the amount of liquidity it creates, the impact of quantitative easing …
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The adoption of quantitative easing (QE) policy by the United States (US) Federal Reserve Bank since early 2009 has aroused widespread concerns in Asia and elsewhere regarding its possible impact in terms of the weakening of the US dollar and stimulating capital outflows to emerging economies...
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We develop a new set of indexes of exchange rate stability, monetary policy independence, and financial market openness as the metrics for the trilemma hypothesis. In our exploration, we take a different and more nuanced approach than the previous indexes developed by Aizenman, Chinn, and Ito...
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A growing share of emerging markets (EMs) uses hybrid versions of inflation targeting that differ from the IT regimes of the OECD countries. Real exchange rate and international reserve changes affect the policy interest rates in commodity countries, aiming to stabilize their real exchange rate...
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