Monetary Base Controllability after an Exit from Quantitative Easing
نویسندگان
چکیده
منابع مشابه
When and How To Exit Quantitative Easing?
S ince the onset of the financial crisis in late 2007, the Federal Reserve has injected an astronomical amount of money into the economy through its large-scale asset purchase (LSAP) programs. According to former Fed Chairman Ben Bernanke (2009, p. 5), the essence of LSAP is “credit easing” (CE)—that is, reducing the cost of private borrowing by direct purchases of privately issued debt instead...
متن کاملHow to Create a Recovery through ‘ Quantitative Monetary Easing
(1) The necessary condition for an economic recovery is the new creation of purchasing power. Non-performing loans form an obstacle to the banks’ ability to create this purchasing power, and this is the root cause of the recession. (2) At the present time the central bank alone is able to increase purchasing power. It is necessary that it engages in open market purchases of assets and active fo...
متن کاملA Compelling Case for Chinese Monetary Easing
• There are three main reasons for this policy shift. First, there is evidence that the Chinese economy has been operating below its potential capacity. Second, among the big five economies, China’s monetary policy stance and broader financial condition both tightened the most in the wake of the global financial crisis, likely weighing on domestic growth. Third, a mix of easy monetary policy an...
متن کاملQuantitative Easing and Financial Stability∗
The massive expansion of central-bank balance sheets in response to recent crises raises important questions about the effects of such “quantitative easing” policies, both their effects on financial conditions and on aggregate demand (the intended effects of the policies), and their possible collateral effects on financial stability. The present paper compares three alternative dimensions of ce...
متن کاملUnbundling Quantitative Easing: Taking a Cue from Treasury Auctions∗
To understand the effects of large-scale asset purchase programs recently implemented by central banks, we study how markets absorb large demand shocks for risk-free debt. Using high-frequency identification, we exploit the structure of the primary market for U.S. Treasuries to isolate demand shocks. These shocks are sizable, leading to large movements in Treasury yields and impacting corporate...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Central Banking Theory and Practice
سال: 2020
ISSN: 2336-9205
DOI: 10.2478/jcbtp-2020-0040