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Modern Money Theory and interrelations between the treasury and the central bank : the case of the United States
Tymoigne, Éric - 2014
One of the main contributions of Modern Money Theory (MMT) has been to explain why monetarily sovereign governments have a very flexible policy space that is unconstrained by hard financial limits. Not only can they issue their own currency to pay public debt denominated in their own currency,...
Persistent link: https://www.econbiz.de/10010251586
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Minsky, monetary policy, and mint street : challenges for the art of monetary policymaking in emerging economies
Yanamandra, Srinivas - 2014
This paper examines the emerging challenges to the art of monetary policymaking using the case study of the Reserve Bank of India (RBI) in light of developments in the Indian economy during the last decade (2003-04 to 2013-14). The paper uses Hyman P. Minsky's financial instability hypothesis as...
Persistent link: https://www.econbiz.de/10010436173
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CBDC next-level : a new architecture for financial "super-stability"
Bossone, Biagio; Haines, Michael R. - 2023
Fractional reserve regimes generate fragile banking, and full reserve regimes (e.g., narrow banking) remove fragility at the cost of suppressing the role of banks as lenders. A Central Bank Digital Currency (CBDC) could provide safe money, but at the cost of potentially disrupting bank lending....
Persistent link: https://www.econbiz.de/10014230396
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The ECB's policy, the recovery fund and the importance of trust : the case of Greece
Dimakopoulou, Vasiliki; Oikonomidēs, Geōrgios; … - 2021
This paper, using a microfounded macroeconomic model that embeds the key features of the Greek economy, studies the efficacy of the various policy measures taken, at national and EU level, to cushion the economic effects of the pandemic shock. The paper attempts to give quantitative answers to...
Persistent link: https://www.econbiz.de/10012650611
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The failure of ECB monetary policy from a Mises-Hayek perspective
Schnabl, Gunther - 2017
The paper analyses the common European monetary policy based on a Mises-Hayek overinvestment framework, which is combined with the theory of optimum currency areas. It shows how since the turn of the millennium a too expansionary monetary policy contributed to unsustainable overinvestment booms...
Persistent link: https://www.econbiz.de/10011619626
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Can central banks do the unpleasant job that governments should do?
Dimakopoulou, Vasiliki; Oikonomidēs, Geōrgios; … - 2023
We investigate what happens when the fiscal authorities do not react to rising public debt so that the unpleasant task of fiscal sustainability falls upon the Central Bank (CB). In particular, we explore whether the CB's bond purchases in the secondary market can restore stability and...
Persistent link: https://www.econbiz.de/10014331713
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Limits of monetary policy autonomy by East Asian debtor central banks
Löffler, Axel; Schnabl, Gunther; Schobert, Franziska - 2012
thereby increase surplus liquidity. East Asian central banks with more flexible exchange rate regimes also face surplus … liquidity that mainly emanates from past accumulation of foreign reserves. We show based on an augmented Barro …-Gordon-type central bank loss function that in both cases surplus liquidity limits monetary policy autonomy. In case of fixed exchange …
Persistent link: https://www.econbiz.de/10009500749
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Shadow banking and the limits of central bank liquidity support : how to achieve a better balance between global and official liquidity
Moe, Thorvald - 2012
Global liquidity provision is highly procyclical. The recent financial crisis has resulted in a flight to safety, with … meet the liquidity needs of dysfunctional financial markets. As the eligibility criteria for central bank borrowing have … bank has the ability to create abundant official liquidity, there should be some limits to its support for the financial …
Persistent link: https://www.econbiz.de/10009516740
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Central bank swap lines
Bahaj, Saleem; Reis, Ricardo - 2018 - First draft: October 2017
Swap lines between advanced-economy central banks are a new important part of the global financial architecture. This paper analyses their monetary policy effects from three perspectives. First, from the perspective of the central banks, it shows that the swap line mimics discount-window credit...
Persistent link: https://www.econbiz.de/10011867130
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Macroeconomic effects of a government overdraft on its central bank account
Khemraj, Tarron - 2024
, allowing for the auctioning of Treasury bills to create the liquidity reflux necessary to refill the account. This paper …
Persistent link: https://www.econbiz.de/10014531238