Monetary Policy, Fiscal Policy, and Secular Stagnation at the Zero
... Figure 15 Life Expectancy and Effective Retirement Age in the Eurozone.......................... 16 Figure 16 Income Inequality in the Eurozone........................................................................ 16 Figure 17 Income Distribution in the Eurozone by Quintile ....................... ...
... Figure 15 Life Expectancy and Effective Retirement Age in the Eurozone.......................... 16 Figure 16 Income Inequality in the Eurozone........................................................................ 16 Figure 17 Income Distribution in the Eurozone by Quintile ....................... ...
Working PaPer SerieS DiSagreement among forecaSterS
... its sensitivity to macroeconomic variables tend to be larger in Italy, Japan and the United Kingdom, where central banks became independent only around the mid-1990s. These findings suggest that more credible monetary policy can substantially contribute to anchoring of expectations about nominal vari ...
... its sensitivity to macroeconomic variables tend to be larger in Italy, Japan and the United Kingdom, where central banks became independent only around the mid-1990s. These findings suggest that more credible monetary policy can substantially contribute to anchoring of expectations about nominal vari ...
Funding Liquidity Risk: Definition and Measurement - ECB
... a point-in-time concept, while funding liquidity risk is forward-looking. As long as the bank is not in an absorbing state, both liquidity and illiquidity are possible. The likelihood of either depends on the time horizon considered and on the nature of the funding position of the bank. In this resp ...
... a point-in-time concept, while funding liquidity risk is forward-looking. As long as the bank is not in an absorbing state, both liquidity and illiquidity are possible. The likelihood of either depends on the time horizon considered and on the nature of the funding position of the bank. In this resp ...
What drives euro area break-even inflation rates?
... space. Speci…cally, we employ a search algorithm to detect the variables with high explanatory power without the need to evaluate the marginal likelihood (or an information criteria) for every model. We then quantify the explanatory power of the determinants of euro area BEIRs at short and longer-te ...
... space. Speci…cally, we employ a search algorithm to detect the variables with high explanatory power without the need to evaluate the marginal likelihood (or an information criteria) for every model. We then quantify the explanatory power of the determinants of euro area BEIRs at short and longer-te ...
CLAUS BRAND DIETER GERDESMEIER BARBARA ROFFIA May
... In October 1998, the Governing Council of the ECB announced the main elements of its stability-oriented monetary policy strategy. It provided a quantitative definition of the primary objective of monetary policy in the euro area, namely the maintenance of price stability. According to this, price st ...
... In October 1998, the Governing Council of the ECB announced the main elements of its stability-oriented monetary policy strategy. It provided a quantitative definition of the primary objective of monetary policy in the euro area, namely the maintenance of price stability. According to this, price st ...
The predictability of monetary policy - ECB
... between the notions of short-term and longerterm predictability. Short-term predictability is achieved when the public, notably financial market participants, is in a position to anticipate correctly the central bank’s next monetary policy decisions. A more fundamental aspect of monetary policy pred ...
... between the notions of short-term and longerterm predictability. Short-term predictability is achieved when the public, notably financial market participants, is in a position to anticipate correctly the central bank’s next monetary policy decisions. A more fundamental aspect of monetary policy pred ...
The great depression and the Friedman-Schwartz hypothesis
... questions. The model features nominal rigidities in both prices and wages, variable capital utilisation, a fractional-reserve banking system which issues demand and time deposits to finance working capital loans and the acquisition of capital, financial frictions arising from the presence of asymmet ...
... questions. The model features nominal rigidities in both prices and wages, variable capital utilisation, a fractional-reserve banking system which issues demand and time deposits to finance working capital loans and the acquisition of capital, financial frictions arising from the presence of asymmet ...
WO R K I N G PA P... WHAT IS GLOBAL EXCESS LIQUIDITY, AND DOES IT MATTER?
... related to shocks in the supply of money by the central bank. Nonetheless, a broad interpretation of a money-based measure of inflationary pressure in terms of "monetary policy stance" is a legitimate one, if one is ready to accept that the ultimate responsibility for inflationary pressure lies in t ...
... related to shocks in the supply of money by the central bank. Nonetheless, a broad interpretation of a money-based measure of inflationary pressure in terms of "monetary policy stance" is a legitimate one, if one is ready to accept that the ultimate responsibility for inflationary pressure lies in t ...
Cash, freedom and crime: Use and impact of cash in
... ECB is bound to support the general economic policy of the European Union.18 The ECB aims to keep inflation below, but close to, 2% by using a variety of policy tools. The interest rate level is a crucial parameter to transmit monetary policy, so the central bank aims to set or influence the interes ...
... ECB is bound to support the general economic policy of the European Union.18 The ECB aims to keep inflation below, but close to, 2% by using a variety of policy tools. The interest rate level is a crucial parameter to transmit monetary policy, so the central bank aims to set or influence the interes ...
Securities and the use of collateral in the context of intraday
... reserves5 on an account they hold with their respective central bank. The Eurosystem’s minimum reserve system pursues the aim of stabilising money market interest rates and of creating (or enlarging) a structural liquidity shortage. The minimum reserve of each credit institution is determined in ...
... reserves5 on an account they hold with their respective central bank. The Eurosystem’s minimum reserve system pursues the aim of stabilising money market interest rates and of creating (or enlarging) a structural liquidity shortage. The minimum reserve of each credit institution is determined in ...
Chi-squared tests of interval and density forecasts, and the
... An alternative group of goodness-of-fit tests is based on the probability integral transformation. For a density forecast whose distribution function is F (.) , this is simply defined as z = F ( y) , where y is the observed outcome: z is the forecast probability of observing an outcome no greater th ...
... An alternative group of goodness-of-fit tests is based on the probability integral transformation. For a density forecast whose distribution function is F (.) , this is simply defined as z = F ( y) , where y is the observed outcome: z is the forecast probability of observing an outcome no greater th ...
The interest rate pass-through in the euro area during
... Our main findings are as follows. The transmission of conventional monetary policy to retail lending rates has not changed during the sovereign debt crisis compared to the pre-crisis period, which differs from previous findings in the literature. However, the composition of the IP has changed. Easy ...
... Our main findings are as follows. The transmission of conventional monetary policy to retail lending rates has not changed during the sovereign debt crisis compared to the pre-crisis period, which differs from previous findings in the literature. However, the composition of the IP has changed. Easy ...
P R I C E S TA B I L... W H Y I S I T I M P... F O R YO U ?
... indications for monetary policy stemming from the ...
... indications for monetary policy stemming from the ...
Kein Folientitel - Startseite
... Bank (ECB) and the national central banks of the EU Member States. • The activities of the ESCB are carried out in accordance with the Treaty establishing the European Community (Treaty) and the Statute of the European System of Central Banks and of the European Central Bank (ESCB/ECB ...
... Bank (ECB) and the national central banks of the EU Member States. • The activities of the ESCB are carried out in accordance with the Treaty establishing the European Community (Treaty) and the Statute of the European System of Central Banks and of the European Central Bank (ESCB/ECB ...
Small and medium-sized enterprises in the euro - ECB
... support SME financing. In this context, the European Commission and the European Investment Bank (EIB) are exploring joint risk-sharing instruments which would combine EU budget resources with the lending capacity of the EIB and the European Investment Fund, as well as resources from national promot ...
... support SME financing. In this context, the European Commission and the European Investment Bank (EIB) are exploring joint risk-sharing instruments which would combine EU budget resources with the lending capacity of the EIB and the European Investment Fund, as well as resources from national promot ...
Monetary policy frameworks: gradual implementation of steadily
... determinants of either nominal income or price developments in the two countries. They argued that in periods of low nominal income, inflation and broad money growth, the signal-to-noise ratio of monetary developments was likely to be low due to frequent shifts in velocity. This argument was support ...
... determinants of either nominal income or price developments in the two countries. They argued that in periods of low nominal income, inflation and broad money growth, the signal-to-noise ratio of monetary developments was likely to be low due to frequent shifts in velocity. This argument was support ...
How money is created and destroyed: A guide to
... However the main reason for this situation is that the ECB uses the 'deposit facility' in conjunction with its 'marginal lending facility' to influence the rate at which banks will lend reserveaccount money to each other. For example, the Governing Council of ...
... However the main reason for this situation is that the ECB uses the 'deposit facility' in conjunction with its 'marginal lending facility' to influence the rate at which banks will lend reserveaccount money to each other. For example, the Governing Council of ...
2008 CBFSAI Annual Report
... Overall, between October 2008 and May 2009, the Governing Council lowered the key ECB interest rates by 325 basis points. In addition, the ECB significantly enlarged its liquidity provision to the euro area banking system, providing unlimited funds to banks against collateral, resulting in a steep f ...
... Overall, between October 2008 and May 2009, the Governing Council lowered the key ECB interest rates by 325 basis points. In addition, the ECB significantly enlarged its liquidity provision to the euro area banking system, providing unlimited funds to banks against collateral, resulting in a steep f ...
(How) Do the ECB and the Fed React to
... established if one compares the monetary policies of the US Federal Reserve (Fed) and the European Central Bank (ECB). While the Fed started to cut rates already in August 2007 the ECB did not lower the interest rate until October 2008.1 At the time of writing, the Fed policy rates have reached thei ...
... established if one compares the monetary policies of the US Federal Reserve (Fed) and the European Central Bank (ECB). While the Fed started to cut rates already in August 2007 the ECB did not lower the interest rate until October 2008.1 At the time of writing, the Fed policy rates have reached thei ...
Monetary Policy Implementation during the Crisis in 2007 to
... An alternative target, previously used by the Fed among others, is the size of bank balances with central banks. While these aggregates can be easily controlled by central banks as well, this method is subject to constraints, which eventually prompted the Fed to return to steering the federal funds ...
... An alternative target, previously used by the Fed among others, is the size of bank balances with central banks. While these aggregates can be easily controlled by central banks as well, this method is subject to constraints, which eventually prompted the Fed to return to steering the federal funds ...
European Commission
... and Denmark) have committed to adopt the euro once they fulfil the necessary conditions. The Member States that acceded to the EU in 2004 and 2007, after the euro was launched, did not meet the conditions for entry to the euro area at the time of their accession. Therefore, their Treaties of Accessi ...
... and Denmark) have committed to adopt the euro once they fulfil the necessary conditions. The Member States that acceded to the EU in 2004 and 2007, after the euro was launched, did not meet the conditions for entry to the euro area at the time of their accession. Therefore, their Treaties of Accessi ...
Modifying Taylor Reaction Functions in Presence of the
... because from 2008M9 on we find ample evidence of quantitative easing of the Fed and the ECB, so the balance sheet expands from its equilibrium value from this time onwards. The expansion of the balance sheet was more pronounced for the Fed since her balance sheet more than doubled immediately after ...
... because from 2008M9 on we find ample evidence of quantitative easing of the Fed and the ECB, so the balance sheet expands from its equilibrium value from this time onwards. The expansion of the balance sheet was more pronounced for the Fed since her balance sheet more than doubled immediately after ...
European Commission
... convergence, in terms of price stability, sound public finances, exchange rate stability and convergence in long-term interest rates. It also assesses the compatibility of their national legislation with Economic and Monetary Union (EMU) rules set out in the Treaty: independence of the national cent ...
... convergence, in terms of price stability, sound public finances, exchange rate stability and convergence in long-term interest rates. It also assesses the compatibility of their national legislation with Economic and Monetary Union (EMU) rules set out in the Treaty: independence of the national cent ...
Permanent and temporary factors in broad money growth
... in actual M3 growth was at first held back and for a short time increasingly dampened by the business cycle, although this effect has diminished over more recent months. There are, of course, other temporary shocks beyond those associated with the business cycle, such as those related to speculative ...
... in actual M3 growth was at first held back and for a short time increasingly dampened by the business cycle, although this effect has diminished over more recent months. There are, of course, other temporary shocks beyond those associated with the business cycle, such as those related to speculative ...
European Central Bank
The European Central Bank (ECB) is the central bank for the euro and administers monetary policy of the Eurozone, which consists of 19 EU member states and is one of the largest currency areas in the world. It is one of the world's most important central banks and is one of the seven institutions of the European Union (EU) listed in the Treaty on European Union (TEU). The capital stock of the bank is owned by the central banks of all 28 EU member states. The Treaty of Amsterdam established the bank in 1998, and it is headquartered in Frankfurt, Germany. As of 2015 the President of the ECB is Mario Draghi, former governor of the Bank of Italy, former member of the World Bank, and former managing director of the Goldman Sachs international division (2002–2005). The bank primarily occupied the Eurotower prior to, and during, the construction of the new headquarters. The owners and shareholders of the European Central Bank are the central banks of the 28 member states of the EU.The primary objective of the European Central Bank, as mandated in Article 2 of the Statute of the ECB, is to maintain price stability within the Eurozone. The basic tasks, as defined in Article 3 of the Statute, are to define and implement the monetary policy for the Eurozone, to conduct foreign exchange operations, to take care of the foreign reserves of the European System of Central Banks and operation of the financial market infrastructure under the TARGET2 payments system and the technical platform (currently being developed) for settlement of securities in Europe (TARGET2 Securities). The ECB has, under Article 16 of its Statute, the exclusive right to authorise the issuance of euro banknotes. Member states can issue euro coins, but the amount must be authorised by the ECB beforehand (upon the introduction of the euro, the ECB also had exclusive right to issue coins).The ECB is governed by European law directly, but its set-up resembles that of a corporation in the sense that the ECB has shareholders and stock capital. Its capital is five billion euro held by the national central banks of the member states as shareholders. The initial capital allocation key was determined in 1998 on the basis of the states' population and GDP, but the key is adjustable. Shares in the ECB are not transferable and cannot be used as collateral.