To broaden the operational scope of monetary policy, several authors suggest cash abolition as an appropriate means of breaking through the zero lower-bound. We argue that the welfare costs of bypassing the zero lower-bound by getting rid of cash entirely are analytically equivalent to negative...

To broaden the scope of monetary policy, cash abolishment is often suggested as a means of breaking through the zero lower bound. However, practically nothing is said about the welfare costs of such a proposal. Rösl, Seitz and Tödter argue that the welfare costs of bypassing the zero lower...

In the aftermath of the global financial and economic crisis, the ECB became deeply involved in activities aimed at stabilizing the financial system, over-leveraged banks, and over-indebted governments. This article addresses the costs of these monetary policy measures, which heavily exceed the...

In the aftermath of the global financial and economic crisis, the ECB became deeply involved in activities aimed at stabilizing the financial system, over-leveraged banks, and over-indebted governments. This article addresses the costs of these monetary policy measures, which heavily exceed the...

We analyze if and to what extent fundamental macroeconomic factors, temporary influences or more structural factors have contributed to the low levels of US bond yields over the last few years. For that purpose, we start with a general model of interest rate determination. The empirical part...

The paper derives the monetary policy reaction function implied by money growth targeting. It consists of an interest rate response to deviations of the inflation rate from target, to the change in the output gap, to money demand shocks and to the lagged interest rate. We show that this type of...