The Resource Should Unconventional Monetary Policies Become Conventional?, (electronic resource)

Should Unconventional Monetary Policies Become Conventional?, (electronic resource)

Label
Should Unconventional Monetary Policies Become Conventional?
Title
Should Unconventional Monetary Policies Become Conventional?
Creator
Contributor
Language
eng
Summary
The large recession that followed the Global Financial Crisis of 2008-09 triggered unprecedented monetary policy easing around the world. Most central banks in advanced economies deployed new instruments to affect credit conditions and to provide liquidity at a large scale after shortterm policy rates reached their effective lower bound. In this paper, we study if this new set of tools, commonly labeled as unconventional monetary policies (UMP), should still be used when economic conditions and interest rates normalize. In particular, we study the optimality of asset purchase programs by using an estimated non-linear DSGE model with a banking sector and long-term private and public debt for the United States. We find that the benefits of using such UMP in normal times are substantial, equivalent to 1.45 percent of consumption. However, the benefits from using UMP are shock-dependent and mostly arise when the economy is hit by financial shocks. When more traditional business cycle shocks (such as supply and demand shocks) hit the economy, the benefits of using UMP are negligible or zero
Cataloging source
EBLCP
Dewey number
332.46
Index
no index present
LC call number
HG230.3
Literary form
non fiction
Nature of contents
dictionaries
Label
Should Unconventional Monetary Policies Become Conventional?, (electronic resource)
Publication
Note
Description based upon print version of record
http://library.link/vocab/branchCode
  • net
Contents
  • Cover; Table of Contents; 1 Introduction; 2 The Model; 2.1 Non-Financial Firms; 2.1.1 Intermediate Goods Producers; 2.1.2 Capital Goods Producers; 2.2 Financial Intermediaries; 2.2.1 Corporate Long-Term Bonds; 2.2.2 Long-Term Government Bonds; 2.2.3 Banking Sector; 2.3 Households and Wage Setting; 2.4 The Government; 3 Model Estimation; 3.1 Parameter Estimates; 4 Model Fit; 5 Implementing UMP in the Model; 5.1 Direct Lending to Firms; 5.2 Purchases of Government Bonds; 5.3 The Effects of UMP; 6 Welfare Analysis; 6.1 Using The Estimated Taylor Rule; 6.1.1 Optimal Coefficients
  • 6.1.2 Impulse Response Analysis6.2 Using Alternative Monetary Policy Rules; 7 Conclusions; References
Control code
ocn983733963
Dimensions
unknown
Extent
1 online resource (45 p.)
Form of item
online
Isbn
9781475591453
http://library.link/vocab/recordID
.b37076334
Specific material designation
remote
System control number
  • (OCoLC)983733963
  • pebc1475591454

Library Locations

    • Deakin University Library - Geelong Waurn Ponds CampusBorrow it
      75 Pigdons Road, Waurn Ponds, Victoria, 3216, AU
      -38.195656 144.304955
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