منابع مشابه
Lessons for Monetary Policy from the Euro-Area Crisis
The earlier 2007/2008 financial crisis generated the main lessons for monetary policy, notably that price stability does not necessarily guarantee financial stability. Nevertheless, the on-going Eurozone crisis has pointed to further lessons, notably that a single currency covering diverse states does need a Banking Union; and to problems of zero risk-weighting for sovereign debts. Without such...
متن کاملInsurance Policies for Monetary Policy in the Euro Area
Insurance Policies for Monetary Policy in the Euro Area* In this paper, we examine the cost of insurance against model uncertainty for the euro area considering four alternative reference models, all of which are used for policy analysis at the ECB. We find that maximal insurance across this model range in terms of a Minimax policy comes at moderate costs in terms of lower expected performance....
متن کاملDiscussion of “Monetary Policy, Macroprudential Policy, and Banking Stability: Evidence from the Euro Area”∗
The staggering economic and social costs left behind by the near collapse of the global financial system in the autumn of 2008 have led to much soul searching among economists. What were the factors that contributed to the massive buildup of risks and imbalances in the financial system in the years prior to the 2007–09 financial crisis—many of which went undetected or were poorly understood at ...
متن کاملThe Risks of Deflation and the Effectiveness of Monetary Policy in the Euro Area *
There is little risk of deflation and a liquidity trap in the euro area. Inflation and short-and long-term inflation expectations are relatively close to 2% per year. With the current short nominal interest rate at 2%, there is ample room for more expansionary monetary policy if needed, and there is no reason to doubt the effectiveness of standard monetary policy in the euro area. Although temp...
متن کاملOn the Stability of Euro Area Money Demand and its Implications for Monetary Policy
We revisit the usefulness of long-run money demand equations for the European Central Bank. We first conduct a model evaluation exercise by means of a recent time–varying cointegration test. A stable relation for euro area M3 is not rejected by data only when accounting for both a speculative motive, represented by international financial markets, and a precautionary motive, proxied by changes ...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2017
ISSN: 1556-5068
DOI: 10.2139/ssrn.3084006