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Band or Point Inflation Targeting? An Experimental Approach

Cornand, Camille - 2016

We conduct laboratory experiments with human subjects to test the rationale of adopting a band versus point inflation targeting regime. Within the standard New Keynesian model, we evaluate the macroeconomic performances of both regimes according to the strength of shocks affecting the economy....

Persistent link: https://www.econbiz.de/10012992436

Non-Ricardian borrowers and mortgage type : implications for monetary policy leaning against the wind

Pietrzak, Marcin - In: Journal of central banking theory and practice 13 (2024) 2, pp. 153-185

Leaning against the wind of credit booms is a monetary policy that is tighter than what is consistent with standard …

Persistent link: https://www.econbiz.de/10014581561

Bank lending channel effectiveness : potential lessons for monetary policy

Świtała, Filip; Kowalska, Iwona; Malajkat, Karolina - In: Journal of banking and financial economics 19 (2023) 1, pp. 160-117

The article supplements the research on the effectiveness of monetary policy transmission - especially through the bank lending channel. The current study focuses on assessing the transmission of monetary impulses through commercial and cooperative banks as well as through individual loan...

Persistent link: https://www.econbiz.de/10014515074

Fixed-Rate Loans and the Effectiveness of Monetary Policy

Park, Sung Ho - 2018

Fixed-rate loans may contribute to financial stability because they lower the volatility of interest rates. This reduced volatility of interest rates, however, may undermine the effectiveness of monetary policy. Fixed-rate loans, also, may change the steady-states of economy because fixed...

Persistent link: https://www.econbiz.de/10012913701

The Effect of Monetary Policy on Credit Spreads

Cenesizoglu, Tolga - 2014

We analyze the effect of monetary policy on yield spreads between corporate bonds with different credit ratings over … predictions of imperfect capital market theories, we find that yields on corporate bonds with low credit ratings widen (narrow …) with respect to those with high credit ratings following an unexpected increase (decrease) in the Fed funds target rate …

Persistent link: https://www.econbiz.de/10013070170

Capital Controls, Domestic Macroprudential Policy and the Bank Lending Channel of Monetary Policy

Fabiani, Andrea; Lopéz Piñeros, Martha; Peydró, … - 2023

We study how capital controls and domestic macroprudential policy tame credit supply booms, respectively targeting … exchange (FX) debt inflows and an increase of reserve requirements on domestic bank deposits in Colombia during a strong credit … boom, as well as credit registry and bank balance sheet data. Our results suggest that first, an increase in the local …

Persistent link: https://www.econbiz.de/10014354226

International Monetary Policy, Credit Supply, and Bank Lending Channels

Yahyaei, Hamid; Singh, Abhay; Smith, Tom - 2023

panel of data on Australian Authorized Deposit-Taking Institutions (ADIs), we show that the supply of credit is vulnerable …

Persistent link: https://www.econbiz.de/10014354754

Risk and state-dependent financial frictions

Harding, Martín; Wouters, Rafael - 2022 - Last updated: August 9, 2022

We augment a standard New Keynesian model with a financial accelerator mechanism and show that financial frictions generate large state-dependent amplification effects. We fit the model to US data and show that, when shocks drive the model far away from the steady state, the nonlinear model...

Persistent link: https://www.econbiz.de/10013335014

A Sectoral Framework for Analyzing Money, Credit and Unconventional Monetary Policy

Cloyne, James; Thomas, Ryland; Tuckett, Alex; Wills, Samuel - 2015

This paper sets out an empirical framework for examining the dynamics of money and credit at a sectoral level. Our … stocks of broad money and credit held by different sectors. Each sector is modelled as a separate block with money, credit … second, the effect of disturbances to credit markets. We also discuss how other policy tools, such as the Funding for Lending …

Persistent link: https://www.econbiz.de/10014132639

Central bank reputation, cheap talk and transparency as substitutes for commitment : experimental evidence

Duffy, John; Heinemann, Frank - 2016 - This Draft: 2 December 2016

We implement a repeated version of the Barro-Gordon monetary policy game in the laboratory and ask whether reputation serves as a substitute for commitment, enabling the central bank to achieve the efficient Ramsey equilibrium and avoid the inefficient, time-inconsistent one-shot Nash...

Persistent link: https://www.econbiz.de/10011572114