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Designing QE in a fiscally sound monetary union

Bletzinger, Tilman; Thadden, Leopold von - 2018

This paper develops a tractable model of a monetary union with a sound fiscal governance structure and shows how in such environment the design of monetary policy above and at the lower bound constraint on short-term interest rates can be linked to well-known findings from the literature dealing...

Persistent link: https://www.econbiz.de/10011856536

Did the crisis change it all? : evidence from monetary and fiscal policy

Mitreska, Ana; Vojnovic, Maja Kadievska; Georgievska, Ljupka - Narodna Banka na Republika Makedonija / Direkcija za … - 2010

The recent financial and economic crisis has triggered bold and diverse policy responses to prevent further, sharper and prolonged adverse effects to the financial and the real sector. The measures for alleviating the cycle were a feature both of the advanced and the emerging and developing...

Persistent link: https://www.econbiz.de/10011622637

The International Spillover Effects of US Monetary Policy Uncertainty

Lakdawala, Aeimit - 2020

An extensive literature studies the international transmission of US monetary policy surprises (shifts in expected path of the policy rate). In this paper we show that changes in uncertainty around the expected path constitute an important additional dimension of spillover effects to global bond...

Persistent link: https://www.econbiz.de/10012836357

The Term Structure of Macroeconomic Risks at the Zero Lower Bound

Roussellet, Guillaume - 2020

This paper exploits the term structures of treasury yields to extract information about macroeconomic dynamics during the effective lower bound period (ELB). I introduce a new no-arbitrage macro-finance affine model jointly representing stochastic inflation trend and volatilitywith a short-term...

Persistent link: https://www.econbiz.de/10012855010

Understanding the Impact of Monetary Policy Shocks on the Corporate Bond Market in Good and Bad Times : A Markov Switching Model

Guidolin, Massimo - 2016

We study the effects of a conventional monetary expansion, quantitative easing, and operation twist on corporate bond yields and spreads. These policies are simulated as shocks to the Treasury yield curve, and the impulse response functions of corporate yields and spreads to shocks are computed...

Persistent link: https://www.econbiz.de/10012988227

Monetary policy uncertainty and the response of the yield curve to policy shocks

Tillmann, Peter - 2017

leads to a significantly smaller increase in long-term bond yields if policy uncertainty is high at the time of the shock … are robust to the measurement of monetary policy uncertainty and the definition of the monetary policy shock. We argue … policy uncertainty leads to opposite effects with term premia increasing even more after a policy shock. …

Persistent link: https://www.econbiz.de/10011661992

Intermediary Leverage Shocks and Funding Conditions

Fontaine, Jean-Sebastien - 2020

The leverage of financial broker-dealers responds to demand- and supply-like shocks. Supply shocks relax their funding constraint and raise leverage, while demand shocks also raise leverage but tighten the constraint. The shocks play opposite roles in financial markets. Leverage supply shocks...

Persistent link: https://www.econbiz.de/10012828548

Definition of price stability, range and point inflation targets

Castelnuovo, Efrem; Nicoletti-Altimari, Sergio; … - 2003

Announcing a quantitative objective for price developments has become a common practice in modern monetary policy making. While the specific features of such announced objectives vary across countries, a common rationale for this is to help anchoring inflation expectations. We use survey data on...

Persistent link: https://www.econbiz.de/10009635904

Identifying the interdependence between US monetary policy and the stock market

Bjørnland, Hilde C.; Leitemo, Kai - 2005

-run and long-run restrictions that maintains the qualitative properties of a monetary policy shock found in the established … fall by 1.5 percent due to a monetary policy shock that raises the federal funds rate by ten basis points. A stock price … shock increasing stock prices by one percent leads to an increase in the interest rate of five basis points. Stock price …

Persistent link: https://www.econbiz.de/10010284471

A post-Keynesian view of central bank independence, policy targets, and the rules-versus-discretion debate

Wray, L. Randall (contributor) - 2007

This paper addresses three issues surrounding monetary policy formation: policy independence, choice of operating targets, and rules versus discretion. According to the New Monetary Consensus, the central bank needs policy independence to build credibility; the operating target is the overnight...

Persistent link: https://www.econbiz.de/10003727040