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, which have allowed households to borrow more • the perceived low risk and tax advantages associated with investing in and …
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We show that the cash-flow exposure of banks to interest rate risk, or income gap, affects the transmission of monetary …
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The negative interest rate policy (NIRP) has been in place in the euro area since June 2014. While the NIRP can provide additional monetary accommodation in the situation where the neutral rate of interest is most likely negative, there are also unintended consequences for banks’ profitability...
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economies, driven by ageing, waning productivity growth, a rise in mark-ups, and a surge in risk aversion in the wake of the … the risk of monetary policy becoming constrained by the lower bound on nominal interest rates. We highlight model … higher levels would have to come from a reversal in risk aversion and flight to safety and a boost in productivity. To …
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I estimate the comparative causal effects of monetary policy "leaning against the wind" (LAW) and macroprudential policy on bank-level lending and leverage by drawing on a single natural experiment. In 1920, when U.S. monetary policy was still decentralized, four Federal Reserve Banks...
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