Optimal quantitative easing in a monetary union

Market Deregulation and Optimal Monetary Policy in a Monetary Union

The global crisis that began in 2008 reheated the debate on market deregulation as a tool to improve economic performance. This paper addresses the consequences of increased flexibility in goods and labor markets for the conduct of monetary policy in a monetary union. We model a two-country monetary union with endogenous product creation, labor market frictions, and price and wage rigidities. W...

How 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...

Quantitative Determination Of Optimal Fiscal And Monetary Policies: A Stochastic Optimal Control Analysis For Iran

Monetary Union Its Costs

A 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...