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Buiter, Willem H. - C.E.P.R. Discussion Papers - 2001

The Paper studies the implications of the zero lower bound on the short nominal rate of interest for the conduct of monetary policy in a small open economy with a floating exchange rate and perfect international capital mobility. Monetary policy affects aggregate demand through the real exchange...

Persistent link: https://www.econbiz.de/10005123739

Precautionary hoarding of liquidity and inter-bank markets: Evidence from the sub-prime crisis

Acharya, Viral V; Merrouche, Ouarda - C.E.P.R. Discussion Papers - 2012

We study the liquidity demand of large settlement (first-tier) banks in the UK and its effect on the Sterling Money Markets before and during the sub-prime crisis of 2007-08. Liquidity holdings of large settlement banks experienced on average a 30% increase in the period immediately following...

Persistent link: https://www.econbiz.de/10011084226

Weathering the crisis and beyond: Perspectives for the Euro Area

Schmidt, Christoph M; Weigert, Benjamin - C.E.P.R. Discussion Papers - 2013

The euro area is experiencing a severe and highly complex crisis. It comprises three problem areas, the difficulties of some highly indebted European sovereigns to ascertain funding at palatable cost, the disconcerting fragility of the European banking system and disappointing growth prospects...

Persistent link: https://www.econbiz.de/10011083564

Did Inflation Really Soar After the Euro Cash Changeover? Indirect Evidence from ATM Withdrawals

Angelini, Paolo; Lippi, Francesco - C.E.P.R. Discussion Papers - 2005

paper we gather indirect evidence on the behaviour of prices from the analysis of cash withdrawals from ATM and their …

Persistent link: https://www.econbiz.de/10005504448

Helicopter Money: Irredeemable Fiat Money and the Liquidity Trap

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2004

The Paper provides a formalization of the monetary economics folk proposition that government fiat money is an asset of the holder (the private sector) but not a liability of the issuer (the state). Money is 'net wealth' in the limited sense that, after consolidation of the intertemporal budget...

Persistent link: https://www.econbiz.de/10005504641

Inflation, Nominal Interest Rates and the Variability of Output

Chadha, Bankim; Tsiddon, Daniel - C.E.P.R. Discussion Papers - 1994

This paper examines the distribution of output around capacity when money demand is a non-linear function of the nominal interest rate such that nominal interest rates cannot become negative. When fluctuations in output result primarily from disturbances to the money market, the variance of...

Persistent link: https://www.econbiz.de/10005504650

Money in Monetary Policy Design: A Formal Characterization of ECB-Style Cross-Checking

Beck, Günter; Wieland, Volker - C.E.P.R. Discussion Papers - 2007

The European Central Bank has assigned a special role to money in its two pillar strategy and has received much criticism for this decision. The case against including money in the central bank's interest rate rule is based on a standard model of the monetary transmission process that underlies...

Persistent link: https://www.econbiz.de/10005497931

The Role of Card Acceptance in the Transaction Demand for Money

Huynh, Kim P.; Schmidt-Dengler, Philipp; Stix, Helmut - C.E.P.R. Discussion Papers - 2014

. Nevertheless, the use of cash remains significant. We hypothesize that the lack of card acceptance at the point of sale is a key … reason why cash continues to play an important role. We formulate a simple inventory model that predicts that the level of … cash demand falls with an increase in card acceptance. We use detailed payment diary data from Austrian and Canadian …

Persistent link: https://www.econbiz.de/10011083353

Quality Pricing-to-Market

Auer, Raphael; Chaney, Thomas; Sauré, Philip - C.E.P.R. Discussion Papers - 2014

We examine firm's pricing-to-market decisions in vertically differentiated industries featuring a large number of firms that compete monopolistically in the quality space. Firms sell goods of heterogeneous quality to consumers with non-homothetic preferences that differ in their income and thus...

Persistent link: https://www.econbiz.de/10011083682

The Role of Central Banks in Financial Stability: How has it changed?

Buiter, Willem H. - C.E.P.R. Discussion Papers - 2012

The roles of central banks in the advanced economies have expanded and multiplied since the beginning of the crisis. The conventional monetary policy roles - setting interest rates in the pursuit of macroeconomic stability and acting as lender of last resort and market maker of last resort to...

Persistent link: https://www.econbiz.de/10011083725