Woodford, Michael; Araújo, Aloísio; Schommer, Susan - National Bureau of Economic Research (NBER) - 2013
We consider the effects of central-bank purchases of a risky asset, financed by issuing riskless nominal liabilities (reserves), as an additional dimension of policy alongside "conventional" monetary policy (central-bank control of the riskless nominal interest rate), in a general-equilibrium...