In the aftermath of the global financial and economic crisis, the ECB became deeply involved in activities aimed at stabilizing the financial system, over-leveraged banks, and over-indebted governments. This article addresses the costs of these monetary policy measures, which heavily exceed the...

This paper provides an overview of the operational implementation of negative interest rates in Europe and Japan. Drawing attention to the fact that there is precedent for negative policy rates and negative money market rates, the paper addresses conceptual issues and summarizes measures which...

The purpose of this paper is to explore the spillover effects Japan's negative interest rate policy (NIRP) had on Asian financial markets. Unlike the quantitative and qualitative monetary easing (QQE) without a negative interest rate, the NIRP not only had limited impacts on Japan's economy but...

Against the background of continued growth disappointments, depressed inflation expectations, and declining real equilibrium interest rates, a number of central banks have implemented negative interest rate policies (NIRP) to provide additional monetary policy stimulus over the past few years....

Die Negativzinsen der Europäischen Zentralbank (EZB) haben bisher nicht zu einer Belebung der Wirtschaft beigetragen. Ganz im Gegenteil, sie bremsen die Kreditvergabe. Eine Zinserhöhung ist nicht nur möglich, sie scheint auch förderlich für die wirtschaftliche Erholung zu sein.

'Leaning against the wind' (LAW) with a higher monetary policy interest rate may have benefits in terms of lower real debt growth and associated lower probability of a financial crisis but has costs in terms of higher unemployment and lower inflation, importantly including a higher cost of a...

We develop a model in which a financial intermediary's investment in risky assets - risk taking - is excessive due to limited liability and deposit insurance and characterize the policy tools that implement efficient risk taking. In the calibrated model, coordinating interest rate policy with...

We develop a model in which a financial intermediary's investment in risky assets - risk taking - is excessive due to limited liability and deposit insurance, and characterize the policy tools that implement efficient risk taking. In the calibrated model, coordinating interest rate policy with...

Standard models used for monetary policy analysis rely on sticky prices. Recently, the literature started to explore also nominal debt contracts. Focusing on mortgages, this paper compares the two channels of transmission within a common framework. The sticky price channel is dominant when...

Die Europäische Zentralbank erhebt seit Mitte 2014 Negativzinsen für Bankeinlagen. Seit Herbst letzten Jahres wird diese Entwicklung von einigen Banken an Privatanleger mit sehr hohen Gesamteinlagen weitergegeben. Hans-Peter Burghof, Universität Hohenheim, sieht in einem »Minuszins« einen...

Sowohl in den USA als auch in Großbritannien ist in naher Zukunft mit einer Zinswende zu rechnen. Die Länder des Euroraums sind davon sicher unterschiedlich betroffen. Die Autoren stellen die wichtigsten Transmissionskanäle der internationalen Übertragung der geldpolitischen Impulse dar und...

Niedrige Inflationsraten fordern die Geldpolitik der Europäischen Zentralbank (EZB) und der Federal Reserve Bank (Fed) heraus. Während die wirtschaftliche Erholung der Eurozone immer noch schleppend verläuft, wächst die US-Wirtschaft robust und der US-Arbeitsmarkt verbesserte sich soweit...

In most banking models, money is merely modeled as medium for transaction, but in reality, money is also the most liquid asset for banks. Central banks do not only passively supply money to meet demand for transaction, as often assumed in these models, instead they also actively inject liquidity...

Die Europäische Zentralbank erhebt seit Mitte 2014 Negativzinsen für Bankeinlagen. Seit Herbst letzten Jahres wird diese Entwicklung von einigen Banken an Privatanleger mit sehr hohen Gesamteinlagen weitergegeben. Hans-Peter Burghof, Universität Hohenheim, sieht in einem »Minuszins« einen...