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Investment, Profits and Federal Reserve's Ultra-Low Interest Rate Policy

Kuralbayeva, Karlygash; Tomás-Valiente Jordá, Francisco - 2021

In recent decades, investment has been lackluster despite high returns on capital, high valuations measured by Tobin’s Q, and low interest rates. In this paper, we provide an account of weak investment after the Great Recession by explaining why investment has grown decreasingly responsive to...

Persistent link: https://www.econbiz.de/10013238371

Unconventional Monetary Policy of the ECB during the Financial Crisis : An Assessment and New Evidence

Pattipeilohy, Christiaan - 2013

We first sketch how central banks have used unconventional monetary policy measures by using three indicators based on the composition of the balance sheet of eleven central banks. Our analysis suggests that although the ECB's balance sheet has increased dramatically during the crisis, the...

Persistent link: https://www.econbiz.de/10013080630

A note concerning government bond yields

Akram, Tanweer - 2020

This paper relates Keynes's discussions of money, the state theory of money, financial markets, investors' expectations, uncertainty, and liquidity preference to the dynamics of government bond yields for countries with monetary sovereignty. Keynes argued that the central bank can influence the...

Persistent link: https://www.econbiz.de/10012317613

Nominal Debt as a Burden on Monetary Policy

Díaz-Giménez, Javier; Giovanetti, Giorgia; Marimon, Ramon - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

nominal, the incentive to generate unanticipated inflation increases the cost of the outstanding debt even if no unanticipated … inflation episodes occur in equilibrium. Without full commitment, the optimal sequential policy is to deplete the outstanding …

Persistent link: https://www.econbiz.de/10010851438

Nominal Debt as a Burden on Monetary Policy

Marimon, Ramon; Díaz-Giménez, Javier; Giovannetti, Giorgia - National Bureau of Economic Research (NBER) - 2007

We characterize the optimal sequential choice of monetary policy in economies with either nominal or indexed debt. In a model where nominal debt is the only source of time inconsistency, the Markov-perfect equilibrium policy implies the progressive depletion of the outstanding stock of debt,...

Persistent link: https://www.econbiz.de/10005085112

China’s evolving reserve requirements

Ma, Guonan; Xiandong, Yan; Xi, Liu - Siirtymätalouksien tutkimuslaitos, Suomen Pankki - 2011

This paper examines the evolving role of reserve requirements as a policy tool in China. Since 2007, the Chinese central bank (PBC) has relied more on this tool to withdraw domestic liquidity surpluses, as a cheaper substitute for open-market operation instruments in this period of rapid FX...

Persistent link: https://www.econbiz.de/10009645240

Unconventional monetary policy of the ECB during the financial crisis: An assessment and new evidence

Pattipeilohy, Christiaan; End, Jan Willem van den; … - de Nederlandsche Bank - 2013

Persistent link: https://www.econbiz.de/10010757276

Money is an experience good: competition and trust in the private provision of money

Marimon, Ramon; Nicolini, Juan Pablo; Teles, Pedro - Banco de Portugal - 2011

plays no role. Trust does play a role but requires a bound on efficiency. Stationary inflation must be non-negative and …We study the interplay between competition and trust as efficiency enhancing mechanisms in the private provision of … money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition …

Persistent link: https://www.econbiz.de/10009207322

Japan's Liquidity Trap

Akram, Tanweer - 2016

foster renewed economic growth and prosperity. Paul Krugman (1998a, b) and Ben Bernanke (2000; 2002) identify low inflation … sustained monetary easing as the key to reigniting inflation, creating an exit from a liquidity trap through low interest rates …

Persistent link: https://www.econbiz.de/10012996309

Inside-Outside Money Competition

Marimon, Ramon; Nicolini, Juan Pablo; Teles, Pedro - 2004

inefficiently provided, inside money competition plays a disciplinary role by providing an upper bound on equilibrium inflation …

Persistent link: https://www.econbiz.de/10014075806