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Monetary policy with judgment : forecast targeting

Svensson, Lars E. O. (contributor) - 2005

"Forecast targeting," forward-looking monetary policy that uses central-bank judgment to construct optimal policy projections of the target variables and the instrument rate, may perform substantially better than monetary policy that disregards judgment and follows a given instrument rule. This...

Persistent link: https://www.econbiz.de/10003001709

Quantitative goals for monetary policy

Fatás, Antonio (contributor); Mihov, Ilian (contributor); … - 2006

We study empirically the macroeconomic effects of an explicit de jure quantitative goal for monetary policy. Quantitative goals take three forms: exchange rates, money growth rates, and inflation targets. We analyze the effects on inflation of both having a quantitative target, and of hitting a...

Persistent link: https://www.econbiz.de/10003320664

Speed limit policy and liquidity traps

Nakata, Taisuke; Schmidt, Sebastian; Yoo, Paul - 2018

The zero lower bound (ZLB) constraint on interest rates makes speed limit policies (SLPs) - policies aimed at stabilizing output growth - less effective. Away from the ZLB, the history dependence induced by a concern for output growth stabilization improves the inflation-output tradeoff for a...

Persistent link: https://www.econbiz.de/10011921493

A toolkit for computing Constrained Optimal Policy Projections (COPPs)

De Groot, Oliver; Mazelis, Falk; Motto, Roberto; … - 2021

This paper presents a toolkit1 for generating optimal policy projections. It makes five contributions. First, the toolkit requires a minimal set of inputs: only a baseline projection for target and instrument variables and impulse responses of those variables to policy shocks. Second, it solves...

Persistent link: https://www.econbiz.de/10012519365

Unconventional monetary policy and the anchoring of inflation expectations

Ciccarelli, Matteo; Garcia, Juan Angel; Montes-Galdón, … - Task Force on Low Inflation (LIFT) - 2017

The paper studies how a prolonged period of subdued price developments may induce a de-anchoring of inflation expectations from the central bank's objective. This is shown within a framework where agents form expectations using adaptive learning, choosing among a set of alternative forecasting...

Persistent link: https://www.econbiz.de/10011636289

The implications of liquidity regulation for monetary policy implementation and the central bank balance sheet size : an empirical analysis of the euro area

Kedan, Danielle; Ventula Veghazy, Alexia - 2021

We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area … crisis and the associated introduction of new liquidity regulation. …

Persistent link: https://www.econbiz.de/10012420275

Interest rate spreads and forward guidance

Bredemeier, Christian; Kaufmann, Christoph; Schabert, … - 2018

We provide evidence that liquidity premia on assets that are more relevant for private agents' intertemporal choices … specification of liquidity premia based on assets' differential pledgeability to a basic New Keynesian model to replicate this … guidance period and are substantially smaller than if liquidity premia were neglected. This indicates that there are no …

Persistent link: https://www.econbiz.de/10011921015

Who benefits from the corporate QE? : a regression discontinuity design approach

Abidi, Nordine; Miquel-Flores, Ixart - 2018

mechanism and the liquidity channel. …

Persistent link: https://www.econbiz.de/10011820153

Bank reserves and broad money in the global financial crisis : a quantitative evaluation

Chadha, Jagjit; Corrado, Luisa; Meaning, Jack; Schuler, … - 2020

The Federal Reserve responded to the global financial crisis by initiating an unprecedented expansion of central bank money (bank reserves) once the policy rate had reached the lower bound. To capture the salient features of the crisis, we develop a model where the central bank can provide...

Persistent link: https://www.econbiz.de/10012271563

Negative interest rates, excess liquidity and retail deposits : banks' reaction to unconventional monetary policy in the euro area

Demiralp, Selva; Eisenschmidt, Jens; Vlassopoulos, Thomas - 2019

’ funding structures jointly with that in their excess liquidity holdings. We find evidence that banks highly exposed to the …, importantly, the explicit consideration of the role of excess liquidity in our analysis. …

Persistent link: https://www.econbiz.de/10012009191