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Forward Guidance at the Zero Lower Bound

Filardo, Andrew J. - 2014

Four major central banks have adopted new approaches to policy rate forward guidance with the aim of enhancing the effectiveness of monetary policy at the zero lower bound. In this special feature, we examine these approaches and assess their impact. So far, the forward guidance appears to have...

Persistent link: https://www.econbiz.de/10013052173

Mixing QE and interest rate policies at the effective lower bound : micro evidence from the euro area

Bittner, Christian; Rodnyansky, Alexander; Saidi, Farzad; … - 2021 - First version: June 15, 2021, this version: October 12, 2021

In the presence of negative monetary-policy rates and a zero lower bound on deposit rates, banks that are more exposed to central banks' asset-purchase programs reduce their lending to the real economy by more than their counterparts. When banks face a lower bound on customer deposit rates, an...

Persistent link: https://www.econbiz.de/10012649768

The new normal: bank lending and negative interest rates in Austria

Barmeier, Marcel - 2022

-in-difference estimation using granular loan level data with a large coverage from Austria, I show, contrary to some previous findings, that …

Persistent link: https://www.econbiz.de/10013332415

Mixing QE and interest rate policies at the effective lower bound : micro evidence from the euro area

Bittner, Christian; Rodnyansky, Alexander; Saidi, Farzad; … - 2024

We study the interaction of expansionary rate-based monetary policy and quantitative easing, despite their concurrent implementation, by exploiting heterogeneous banks and the introduction of negative monetary-policy rates in a fragmented euro area. Quantitative easing increases credit supply...

Persistent link: https://www.econbiz.de/10014520834

Monetary policy interactions : the policy rate, asset purchases, and optimal policy with an interest rate peg

Gödl-Hanisch, Isabel; Mau, Ronald; Rawls, Jonathan - 2023

We study monetary policy in a New Keynesian model with a variable credit spread and scope for central bank asset purchases to matter. A novel financial and labor market interaction generates an endogenous cost-push channel in the Phillips curve and a credit wedge in the IS curve. The "divine...

Persistent link: https://www.econbiz.de/10014252576

The Effect of the Zero Lower Bound, Forward Guidance and Unconventional Monetary Policy on Interest Rate Sensitivity to Economic News in Sweden

Moessner, Richhild; Haan, Jakob de; Jansen, David-Jan - 2014

We study whether the sensitivity of Swedish interest rates to economic news was affected by the zero lower bound and the Riksbank's monetary policies. Our results suggest that the sensitivity of interest rate swaps to Swedish macroeconomic news was reduced at the effective zero lower bound at...

Persistent link: https://www.econbiz.de/10014149305

Estimating monetary policy rules when the zero lower bound on nominal interest rates is approached

Kiesel, Konstantin; Wolters, Maik H. - 2014

Monetary policy rule parameters estimated with conventional estimation techniques can be severely biased if the … estimation sample includes periods of low interest rates. Nominal interest rates cannot be negative, so that censored regression … methods like Tobit estimation have to be used to achieve unbiased estimates. We use IV-Tobit regression to estimate monetary …

Persistent link: https://www.econbiz.de/10010235450

Negative Interest Rate Policies : Sources and Implications

Arteta, Carlos Ó. - 2016

Against the background of continued growth disappointments, depressed inflation expectations, and declining real equilibrium interest rates, a number of central banks have implemented negative interest rate policies (NIRP) to provide additional monetary policy stimulus over the past few years....

Persistent link: https://www.econbiz.de/10012984518

How Low Can Central Banks Go? The Banking Threshold to Negative Interest Rates

Berriel, Tiago - 2019

Abstract Negative interest rates policies (NIRP), usually depicted in economic textbooks as an impossibility due to the prospect of infinite demand for money, are now a reality in several countries due to different reasons. But while the ZLB has been surpassed when it comes to Central Banks, it...

Persistent link: https://www.econbiz.de/10012899581

COVID-19 and monetary policy with zero bounds : a cross-country investigation

Yilmazkuday, Hakan - 2021

Persistent link: https://www.econbiz.de/10012603182