Showing 1 - 10 of 86
The rate-of-return-dominance puzzle asks why low-return assets, like fiat money, are used in actual economies given … monetary models which arbitrarily restrict the marketability properties of alternative assets to make money valuable are … difficult to assess. In this paper, I provide a framework in which fiat money has value in equilibrium, even though a higher …
Persistent link: https://www.econbiz.de/10009320820
DSGE model. Considering SVAR models in which either the interest rate is predetermined for money or these two monetary … estimated monetary policy rule is strongly sensitive to the identification scheme. This suggests that the way money is …
Persistent link: https://www.econbiz.de/10004998850
We use high-frequency intraday interest rate data to measure euro area monetary policy shocks on the days of ECB interest rate announcements between 2002 and 2013. In line with Gürkaynak et al. (2005), we look at monetary policy shocks along two time dimensions: one related to the current level...
Persistent link: https://www.econbiz.de/10010938544
interbank money market. This paper shows in particular that a central bank not only has the capacity but indeed must strive to … event of temporary money demand shocks. During the first part of the crisis, the ECB acted in accordance with the separation …
Persistent link: https://www.econbiz.de/10008548998
In this paper, we analyse the interactions between monetary and macro-prudential policies and the circumstances under which such interactions call for their coordinated implementation. We start with a review of the interdependencies between monetary and macro-prudential policies. Then, we use a...
Persistent link: https://www.econbiz.de/10010816001
The aim of this paper is to check the possible existence of a bank lending channel in France. For that purpose, we have estimated a dynamic reduced form model allowing for asymmetries in loan supply across banks, depending on their size, liquidity and capitalization. We have used a panel of 312...
Persistent link: https://www.econbiz.de/10005056537
Estimating a forward-looking monetary policy rule by the Generalized Method of Moments (GMM) has become a popular approach since the influential paper by Clarida, Gali, and Gertler (1998). However, an abundant econometric literature underlines the unappealing small-samples properties of GMM...
Persistent link: https://www.econbiz.de/10005036173
In this paper, we estimate two small, forward-looking, macroeconomic models for the US and Germany and we compare the implied optimal monetary policy rules. Both models have a standard structure: an I-S curve, a Phillips curve, a short term interest-rate rule and a long term interest rate...
Persistent link: https://www.econbiz.de/10005036178
Among several concepts encompassed by the idea of an equilibrium rate of unemployment (labour mismatch, unemployment trend, non inflationary unemployment, structural unemployment), the NAIRU appears as the most interesting one for a central bank since it focuses directly on inflation. Thus, the...
Persistent link: https://www.econbiz.de/10005036216
this paper: 1) we allow real balances to appear both in the IS and Phillips curves; 2) we find some evidence that money … European Central Bank) to factor in monetary developments, by exploiting the long-run relationship between money growth and … systematically to a filtered measure of money growth and weaker evidence it has reacted more aggressively during high money growth …
Persistent link: https://www.econbiz.de/10005036223