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Assessing the fiscal-monetary policy mix in the euro area

Bańkowski, Krzysztof; Christoffel, Kai; Faria, Thomas - 2021

This paper attempts to gauge the effects of various fiscal and monetary policy rules on macroeconomic outcomes in the euro area. It consists of two major parts – a historical assessment and an assessment based on an extended scenario until 2030 – and it builds on the ECB-BASE –a...

Persistent link: https://www.econbiz.de/10012705515

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

Optimal monetary policy rules with labor market frictions

Faia, Ester (contributor) - 2006

This paper studies optimal monetary policy rules in a framework with sticky prices, matching frictions and real wage rigidities. Optimal monetary policy is given by a constrained Ramsey plan in which the monetary authority maximizes the agents’ welfare subject to the competitive economy...

Persistent link: https://www.econbiz.de/10003396811

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