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Monetary Policy Wedges and the Long-term Liabilities of Households and Firms
Binsbergen, Jules H. van; Grotteria, Marco - National Bureau of Economic Research - 2024
We examine the transmission of monetary policy shocks to the long-duration liabilities of households and firms using high-frequency variation in 10-year swap rates around FOMC announcements. We find that four weeks after the announcement mortgage rates move one-for-one with 10-year swap rates,...
Persistent link: https://www.econbiz.de/10014486229
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Money Matters : Broad Divisia Money and the Recovery of Nominal GDP from the COVID-19 Recession
Bordo, Michael D.; Duca, John V. - National Bureau of Economic Research - 2023
The rise of inflation in 2021 and 2022 surprised many macroeconomists who ignored the earlier surge in money growth … regulatory changes and mutual fund costs that affect the substitutability of money for other financial assets. In the short run …The velocity of broad Divisia money temporarily declines during crises like the Great and COVID Recessions, but later …
Persistent link: https://www.econbiz.de/10014322692
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Unconventional government debt purchases as a supplement to conventional monetary policy
Ellison, Martin; Tischbirek, Andreas - In: Journal of Economic Dynamics and Control 43 (2014) C, pp. 199-217
In response to the Great Financial Crisis, the Federal Reserve, the Bank of England and many other central banks have adopted unconventional monetary policy instruments. We investigate if one of these, purchases of long-term government debt, could be a valuable addition to conventional...
Persistent link: https://www.econbiz.de/10010776905
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Quantitative easing and the loan to collateral value ratio
Damjanovic, Tatiana; Girdėnas, Šarūnas - In: Journal of Economic Dynamics and Control 45 (2014) C, pp. 146-164
either the loan to value ratio declines or house prices fall, we observe a decrease in the money multiplier. We argue that … the central bank should respond to the fall in the money multiplier and therefore to the reduction in house prices or the … money multiplier in response to the drop in the loan to collateral value ratio. …
Persistent link: https://www.econbiz.de/10011051939
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Monetary Policy Transmission Through Online Banks
Erel, Isil; Liebersohn, Jack; Yannelis, Constantine; … - National Bureau of Economic Research - 2023
Financial technology has reshaped commercial banking. It has the potential to radically alter the transmission of monetary policy by lowering search costs and expanding bank markets. This paper studies the reaction of online banks to changes in federal fund rates. We find that these banks...
Persistent link: https://www.econbiz.de/10014322768
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Pairwise trade, asset prices, and monetary policy
Nosal, Ed; Rocheteau, Guillaume - In: Journal of Economic Dynamics and Control 37 (2013) 1, pp. 1-17
We construct a search-theoretic model where fiat money coexists with real assets, and all assets can be used as a media … facts: (i) fiat money can be valued despite being dominated in its rate of return; (ii) real assets with identical dividend …
Persistent link: https://www.econbiz.de/10010871014
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Money, random matching and endogenous growth: A quantitative analysis
Chu, Angus C.; Kan, Kamhon; Lai, Ching-Chong; Liao, … - In: Journal of Economic Dynamics and Control 41 (2014) C, pp. 173-187
In this study, we develop a search-and-matching monetary growth model to analyze the effects of inflation on economic growth and social welfare by introducing endogenous economic growth via capital externality into a two-sector search-and-matching model. We find that the channel through which...
Persistent link: https://www.econbiz.de/10010779382
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Supply and Demand and the Term Structure of Interest Rates
Greenwood, Robin; Hanson, Samuel G.; Vayanos, Dimitri - National Bureau of Economic Research - 2023
We survey the growing literature emphasizing the role that supply-and-demand forces play in shaping the term structure of interest rates. Our starting point is the Vayanos and Vila (2009, 2021) model of the term structure of default-free bond yields, which we present in both discrete and...
Persistent link: https://www.econbiz.de/10014437010
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The Debauchery of Currency and Inflation : Chile, 1970-1973
Edwards, Sebastian - National Bureau of Economic Research - 2023
In this essay, I analyze Salvador Allende's economic policies in Chile during the early 1970s. I argue that the explosion of inflation during his administration (above 1,500% on a six-month annualized measure) was predictable, and that the government's response to it, through massive and strict...
Persistent link: https://www.econbiz.de/10014437020
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Central Bank Credibility and Fiscal Responsibility
Schreger, Jesse; Yared, Pierre; Zaratiegui, Emilio - National Bureau of Economic Research - 2023
We consider a New Keynesian model with strategic monetary and fiscal interactions. The fiscal authority maximizes social welfare. Monetary policy is delegated to a central bank with an anti-inflation bias that suffers from a lack of commitment. The impact of central bank hawkishness on debt...
Persistent link: https://www.econbiz.de/10014287347