Similar Search Results

House Prices and Ultra-Low Interest Rates : Exploring the Non-Linear Nexus

Dieckelmann, Daniel; Hempell, Hannah Sabine; Jarmulska, … - 2023

The acceleration of house price growth amidst falling interest rates to record-low levels across euro area countries between 2015 and 2021 has sparked renewed interest in the link between the two variables. Asset-pricing theory suggests that real house prices respond to changes in real interest...

Persistent link: https://www.econbiz.de/10014257208

Macroeconomic Reversal Rate in a Low Interest Rate Environment

End, Jan-Willem van den; Konietschke, Paul; Samarina, Anna - 2021

This paper investigates how the monetary policy transmission channels change once the economy is in a low interest rate environment. We estimate a nonlinear model for the euro area and its five largest countries over the period 1999q2-2019q1 and allow for the effects of monetary policy shocks to...

Persistent link: https://www.econbiz.de/10013312597

Pensions and Fertility : Back to the Roots -- The Introduction of Bismarck's Pension Scheme and the European Fertility Decline

Fenge, Robert - 2014

Fertility has long been declining in industrialised countries and the existence of public pension systems is considered … pension system depresses fertility. Our theoretical framework highlights that the effect of a public pension system on … fertility works via the impact of contributions in such a system on disposable income as well as via the impact on future …

Persistent link: https://www.econbiz.de/10013047746

Capital Inflows and Euro Area Long-Term Interest Rates

Carvalho, Daniel - 2015

Capital flows into the euro area were particularly large in the mid-2000s and the share of foreign holdings of euro area securities increased substantially between the introduction of the euro and the outbreak of the global financial crisis. We show that the increase in foreign holdings of euro...

Persistent link: https://www.econbiz.de/10013020658

The Natural Rate of Interest and the Financial Cycle

Krustev, Georgi - 2018

I extend the model of Laubach and Williams (2003) by introducing an explicit role for the financial cycle in the joint estimation of the natural rates of interest, unemployment and output, and the sustainable growth rate of the US economy. By incorporating the financial cycle - arguably an...

Persistent link: https://www.econbiz.de/10012914883

Taylor-Rule Consistent Estimates of the Natural Rate of Interest

Brand, Claus - 2019

We estimate the natural rate of interest for the US and the euro area in a semi-structural model comprising a Taylor rule. Our estimates feature key elements of Laubach and Williams (2003), but are more consistent with using conventional policy rules: we model inflation to be stationary, with...

Persistent link: https://www.econbiz.de/10012889739

Negative Interest Rates, Excess Liquidity and Retail Deposits : Banks’ Reaction to Unconventional Monetary Policy in the Euro Area

Demiralp, Selva; Eisenschmidt, Jens; Vlassopoulos, Thomas - 2021

Negative interest rate policy (NIRP) is associated with a particular friction. The remuneration of banks´ retail deposits tends to be floored at zero, which limits the transmission of policy rate cuts to bank funding costs. We investigate whether this friction affects banks’ reactions under...

Persistent link: https://www.econbiz.de/10013221074

Money in Monetary Policy Design : Monetary Cross-Checking in the New-Keynesian Model

Beck, Günter W. - 2010

In the New-Keynesian model, optimal interest rate policy under uncertainty is formulated without reference to monetary aggregates as long as certain standard assumptions on the distributions of unobservables are satisfied. The model has been criticized for failing to explain common trends in...

Persistent link: https://www.econbiz.de/10013144004

Interest Rate Expectations and Uncertainty During ECB Governing Council Days : Evidence From Intraday Implied Densities of 3-Month EURIBOR

Vergote, Olivier - 2011

This paper analyses changes in short-term interest rate expectations and uncertainty during ECB Governing Council days. For this purpose, it first extends the estimation of risk-neutral probability density functions up to tick frequency. In particular, the non-parametric estimator of these...

Persistent link: https://www.econbiz.de/10013119936

The Price of Liquidity : The Effects of Market Conditions and Bank Characteristics

Fecht, Falko - 2011

We study the prices that individual banks pay for liquidity (captured by borrowing rates in repos with the central bank and benchmarked by the overnight index swap) as a function of market conditions and bank characteristics. These prices depend in particular on the distribution of liquidity...

Persistent link: https://www.econbiz.de/10013121244