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First impressions matter : signalling as a source of policy dynamics

Hansen, Stephen; McMahon, Michael - 2011

Persistent link: https://www.econbiz.de/10009298215

The effect of conventional and unconventional euro area monetary policy on macroeconomic variables

Halberstadt, Arne; Krippner, Leo - 2016

We investigate the e ect of monetary policy on European macroeconomic variables using a small-scale vector autoregression (VAR) and the "Effective Monetary Stimulus" (EMS). The EMS is a monetary policy metric obtained from yield curve data that is designed to consistently reflect the overall...

Persistent link: https://www.econbiz.de/10011578396

Do conventional monetary policy instruments matter in unconventional times?

Buchholz, Manuel; Schmidt, Kirsten; Tonzer, Lena - 2019

This paper investigates how declines in the deposit facility rate set by the ECB affect euro area banks' incentives to hold reserves at the central bank. We find that, in the face of lower deposit rates, banks with a more interest-sensitive business model are more likely to reduce reserve...

Persistent link: https://www.econbiz.de/10012041944

Reversal interest rate and macroprudential policy

Darracq Pariès, Matthieu; Kok Sørensen, Christoffer; … - 2021

Could a monetary policy loosening in a low interest rate environment have unintended recessionary effects? Using a non-linear macroeconomic model fitted to the euro area economy, we show that the effectiveness of monetary policy can decline in negative territory until it reaches a turning point,...

Persistent link: https://www.econbiz.de/10012596371

Excess reserves and monetary policy tightening

Fricke, Daniel; Greppmair, Stefan; Paludkiewicz, Karol - 2024 - This draft: February 2, 2024

We show that the transmission of the European Central Bank’s (ECB) recent monetary policy tightening differs across banks depending on their level of excess reserves. Specifically, the net worth of reserve-rich banks may display a boost when the interest rate paid on reserves increases...

Persistent link: https://www.econbiz.de/10014481115

Central bank communication and the perception of monetary policy by financial market experts

Schmidt, Sandra; Nautz, Dieter - 2010

This paper investigates why financial market experts misperceive the interest rate policy of the European Central Bank … panel random coefficient model, we show that financial experts have systematically misperceived the ECB's interest rate rule …. However, although experts tend to overestimate the impact of inflation on future interest rates, perceptions of monetary …

Persistent link: https://www.econbiz.de/10008796249

Chinese monetary policy and the dollar peg

Reade, J. James; Volz, Ulrich - 2010

This paper investigates to what extent Chinese monetary policy is constrained by the dollar peg. To this end, we use a cointegration framework to examine whether Chinese interest rates are driven by the Fed's policy. In a second step, we estimate a monetary model for China, in which we include...

Persistent link: https://www.econbiz.de/10008796581

The effectiveness of monetary policy in steering money market rates during the financial crisis

Abbassi, Puriya; Linzert, Tobias - 2012

The financial crisis has deeply affected money markets and thus, potentially, the proper functioning of the interest rate channel of monetary policy transmission. Therefore, we analyze the effectiveness of monetary policy in steering euro area money market rates looking at, first, the...

Persistent link: https://www.econbiz.de/10009564491

Monetary transmission right from the start : the (dis)connection netween the money market and the ECB’s main refinancing rates

Abbassi, Puriya; Nautz, Dieter - 2010

The relation between the ECB's main refinancing (MRO) rates and the money market is key for the monetary transmission process in the euro area. This paper investigates how money market rates respond to the new information revealed by MRO auctions. Our results confirm a stabilizing level...

Persistent link: https://www.econbiz.de/10003962841

Interest rate rules under financial dominance

Lewis, Vivien; Roth, Markus - 2018

We study the equilibrium properties of a business cycle model with financial frictions and price adjustment costs. Capital-constrained entrepreneurs finance risky projects by borrowing from banks. Banks, in turn, make loans using equity and deposits. Because financial contracts are not...

Persistent link: https://www.econbiz.de/10011897971