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Shocks, Structures or Monetary Policies? The Euro Area and Us after 2001

Christiano, Lawrence J. - 2008

The US Federal Reserve cut interest rates more vigorously in the recent recession than the European Central Bank did. By comparison with the Fed, the ECB followed a more measured course of action. We use an estimated dynamic general equilibrium model with financial frictions to show that...

Persistent link: https://www.econbiz.de/10012773305

Inflation Band Targeting and Optimal Inflation Contracts

Mishkin, Frederic S. - 2006

In this paper we examine how target ranges work in the context of a Barro-Gordon (1983) type model, in which the time-inconsistency problem stems from political pressures from the government. We show that target ranges turn out to be an excellent way to cope with the time-inconsistency problem,...

Persistent link: https://www.econbiz.de/10012779650

Market-stabilization QE

Motto, Roberto; Özen, Kadir - 2022

We identify a novel dimension of monetary policy from high-frequency changes in asset prices around ECB policy events, orthogonal to surprises extracted from risk-free interest rates. We find that it is present in policy events that were interpreted by real-time market commentaries as containing...

Persistent link: https://www.econbiz.de/10012818740

Collateral Damage? Micro-Simulation of Transaction Cost Shocks on the Value of Central Bank Collateral

Lennkh, Alvise - 2015

cost shock. A 10 basis point increase in transaction costs entails a direct -0.30% decrease of collateral value and a -0 …

Persistent link: https://www.econbiz.de/10013020666

Asymmetric Shocks in a Currency Union : The Role of Central Bank Collateral Policy

Koulischer, Francois - 2015

Currency unions limit the ability of the central bank to use interest rate policy to accommodate asymmetric shocks. I show that collateral policy can serve to dampen asymmetric shocks in a currency area when these shocks also affect the collateral held by banks and when collateral portfolios of...

Persistent link: https://www.econbiz.de/10013022497

A new measure of monetary policy shocks

Zhang, Xu - 2021 - Last updated: June 21, 2021

Federal Reserve's information set as in Romer and Romer (2004), I propose a new method of constructing a monetary policy shock … that occurs on Federal Reserve announcement days. I provide substantial evidence that the new monetary policy shock is … consistent with the predictions of workhorse macroeconomic models for structural monetary policy shocks. The new shock has large …

Persistent link: https://www.econbiz.de/10012546138

Inflation targeting as a shock absorber

Fratzscher, Marcel; Große Steffen, Christoph; Rieth, Malte - In: Journal of international economics 123 (2020), pp. 1-16

Persistent link: https://www.econbiz.de/10012588312

The effects of the ECB's pandemic-related monetary policy measures

Nelimarkka, Jaakko; Laine, Olli-Matti - 2021

We assess the macroeconomic impact of pandemic-related monetary policy measures of the ECB. Conditioning on counterfactual interest rate paths that would have materialised in the absence of the policies, the macroeconomic effects are measured using structural vector autoregressions. In the...

Persistent link: https://www.econbiz.de/10012622376

Delphic and odyssean monetary policy shocks : evidence from the euro area

Andrade, Philippe; Ferroni, Filippo - In: Journal of monetary economics 117 (2021), pp. 816-832

Persistent link: https://www.econbiz.de/10012603261

Estimating Fed's unconventional policy shocks

Jarociński, Marek - 2021

Fed's monetary policy announcements convey a mix of news about different kinds of conventional and unconventional policies and about the economy. Financial market responses to these announcements are very leptokurtic: often tiny, but sometimes large. I estimate the underlying structural shocks...

Persistent link: https://www.econbiz.de/10012607553