interest rates and bank risk-taking. This paper also finds the presence of the risk-taking channel based on a panel of publicly … listed bank data in Asia. Using both annual and quarterly data, "too low" interest rates are found to lead to an increase in …

Over the last few decades, real interest rates have trended downward in many countries. The most common explanation is … that when long-run asset demands by households are C-shaped in relation to real interest rates, a feature we motivate … emergence of, and the convergence to, a second stable and determinate steady state where both the real interest rate and …

We propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule …

" model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest …-bearing reserves. In the textbook model with only non-interest-bearing money, we find the following: A money-financed fiscal expansion … that the central bank abandon its usual feedback rule for an extended period, allowing interest rates to instead be …

aggregate demand, and thus natural interest rates. At the core of the theory is the simple yet under-appreciated observation … lead to indebted household demand, pushing down natural interest rates. Moreover, popular expansionary policies—such as …

through which the COVID‑19 shock is likely to influence US interest rates over the years ahead, including its impacts on …

The neutral rate of interest is an important concept and communication tool for central banks. We develop a small open … economy model with overlapping generations to study the determinants of the neutral real rate of interest in a small open …

The ability of monetary policy to influence the term structure of interest rates and the macroeconomy depends on the …- habitat demand function that is upward-sloping in bond prices and downward-sloping in bond yields, especially when interest … rates are low. This supports the operation of a recruitment channel at low interest rates, whereby long-term interest rates …