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The Collateral Premium and Levered Safe-Asset Production

Ross, Chase P. - 2022

Banks are vital suppliers of money-like safe assets, which they produce by issuing short-term liabilities and pledging …

Persistent link: https://www.econbiz.de/10013404301

Does Bank Lending Affect Output? Evidence from the U.S. States

Driscoll, John C. - 2003

.S. states are small open economies with fixed exchange rates, state-specific shocks to money demand are automatically … variable, I find that shocks to money demand have large and statistically significant effects on the supply of bank loans, but …

Persistent link: https://www.econbiz.de/10014075822

Friedman's Monetary Economics in Practice

Nelson, Edward - 2011

to the path of short-term rates; 3) deposit insurance has been extended, helping to insulate the money stock from credit …

Persistent link: https://www.econbiz.de/10013124914

Self-confirming price dispersion in monetary economies

Baughman, Garth; Rabinovich, Stanislav - 2018

simultaneous search or any heterogeneity in preferences, production costs, or search technologies. A distribution of money holdings … price distribution, in turn, makes buyers indifferent across a range of money balances, rationalizing the non …-degenerate distribution of money holdings. We completely characterize the distribution of posted prices and money holdings in any equilibrium …

Persistent link: https://www.econbiz.de/10011932364

Nonlinear Unemployment Effects of the Inflation Tax

Ait Lahcen, Mohammed; Baughman, Garth; Rabinovich, Stanislav - 2021

We argue that long-run inflation has nonlinear and state-dependent effects on unemployment, output, and welfare. Using panel data from the OECD, we document three correlations. First, there is a positive long-run relationship between anticipated inflation and unemployment. Second, there is also...

Persistent link: https://www.econbiz.de/10013219614

The Effect of the China Connect

Ma, Chang; Rogers, John H.; Zhou, Sili - 2021

We document the effect on Chinese firms of the Shanghai (Shenzhen)-Hong Kong Stock Connect. The Connect was an important capital account liberalization introduced in the mid-2010s. It created a channel for cross-border equity investments into a selected set of Chinese stocks while China's...

Persistent link: https://www.econbiz.de/10013225114

The Macroeconomic Implications of CBDC : A Review of the Literature

Infante, Sebastian; Kim, Kyungmin; Silva, André F.; … - 2023

This paper provides an overview of the literature examining how the introduction of a CBDC would affect the banking sector, financial stability, and the implementation and transmission of monetary policy in a developed economy such as the United States. A CBDC has the potential to improve...

Persistent link: https://www.econbiz.de/10014354837

How Large is the Output Cost of Disinflation?

Tetlow, Robert - 2022

This paper examines estimates of, and drivers for, the sacrifice ratio in the United States. Three approaches are employed. The first reviews the literature on what sacrifice ratio might be expected. The second studies a generic disinflation experiment using 40 estimated macro models of the U.S....

Persistent link: https://www.econbiz.de/10014241667

Monetary Policy and the Corporate Bond Market : How Important is the Fed Information Effect?

Smolyansky, Michael; Suárez, Gustavo A. - 2021

Does expansionary monetary policy drive up prices of risky assets? Or, do investors interpret monetary policy easing as a signal that economic fundamentals are weaker than they previously believed, prompting riskier asset prices to fall? We test these competing hypotheses within the U.S....

Persistent link: https://www.econbiz.de/10013231924

Global Stablecoins : Monetary Policy Implementation Considerations from the U.S. Perspective

Malloy, Matthew; Lowe, David - 2021

This note explores the potential effects of the widespread adoption of a global stablecoin (GSC) on key aggregate financial sector balance sheets in the United States. To do this, we map out cash flows of GSC transactions among financial sector entities using a stylized set of 't-accounts'. By...

Persistent link: https://www.econbiz.de/10013231947