Optimal central bank lending
نویسنده
چکیده
We analyze optimal monetary policy in a sticky price model where the central bank supplies money outright via asset purchases and lends money temporarily against collateral. The terms of central bank lending a¤ect rationing of money and impact on macroeconomic aggregates. The central bank can set the policy rate and its ination target in a way that implements the rst best long-run allocation, which is impossible if money were supplied in a lump-sum way (as commonly assumed). E¢ cient central bank lending further increases gains from macroeconomic stabilization beyond pure interest rate policy. This requires departing from a "Treasuriesonly" regime. JEL classi cation: E4; E5; E32.
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ورودعنوان ژورنال:
- J. Economic Theory
دوره 157 شماره
صفحات -
تاریخ انتشار 2015