A Model of Unconventional Monetary Policy Mark Gertler and Peter Karadi NYU
... section 3. We do so under different assumptions about the efficiency costs of central bank intermediation. We then compute for each case the net welfare gains from the optimal credit market intervention. We find that so long as the efficiency costs are quite modest, the gains may be quite significant. As ...
... section 3. We do so under different assumptions about the efficiency costs of central bank intermediation. We then compute for each case the net welfare gains from the optimal credit market intervention. We find that so long as the efficiency costs are quite modest, the gains may be quite significant. As ...
Why Does The United States Need - HiWAAY
... Unfortunately, people too often confuse "money" with "wealth.” Wealth may, but does not always, consist of money, because wealth need not be capable of performing the special function of money. And even a very large quantity of some types of money— for example, German paper marks from the period of ...
... Unfortunately, people too often confuse "money" with "wealth.” Wealth may, but does not always, consist of money, because wealth need not be capable of performing the special function of money. And even a very large quantity of some types of money— for example, German paper marks from the period of ...
A Policy Model to Analyze Macroprudential Regulations and Monetary Policy 2014-6
... focuses on the balance-sheet position of the lenders (e.g., banks), and how this can impact their funding conditions and loan supply. In particular, better-capitalized banks are able to attract funds at cheaper rates, which allows them to lend to households and businesses at reduced rates. This cha ...
... focuses on the balance-sheet position of the lenders (e.g., banks), and how this can impact their funding conditions and loan supply. In particular, better-capitalized banks are able to attract funds at cheaper rates, which allows them to lend to households and businesses at reduced rates. This cha ...
SIXTEENTH BI-ANNUAL REPORT OF THE MONETARY POLICY
... months to April 2016. The monetary policy stance during the period was aimed at maintaining inflation within the Government’s target range of 2.5 percent on either side of the 5 percent medium-term target. This is consistent with the price stability objective of the Central Bank of Kenya (CBK). The ...
... months to April 2016. The monetary policy stance during the period was aimed at maintaining inflation within the Government’s target range of 2.5 percent on either side of the 5 percent medium-term target. This is consistent with the price stability objective of the Central Bank of Kenya (CBK). The ...
Some Historical Reflections on the Governance of the Federal
... loan certificates”) during panics and on a number of occasions successfully allayed the panic (Gorton 1985). The Aldrich-Vreeland Act also established the National Monetary Commission (NMC), which was to study the monetary experience of many countries and make recommendations for a reform of the US ...
... loan certificates”) during panics and on a number of occasions successfully allayed the panic (Gorton 1985). The Aldrich-Vreeland Act also established the National Monetary Commission (NMC), which was to study the monetary experience of many countries and make recommendations for a reform of the US ...
Helicopter money – next year`s Christmas - Nordea e
... monetary policy measures. It would also directly benefit households that are not indebted. Many such households probably also have a high propensity to consume. The direct effect of recent years' monetary policy has benefited borrowers, adversely affected lenders and had no direct effect at all for ...
... monetary policy measures. It would also directly benefit households that are not indebted. Many such households probably also have a high propensity to consume. The direct effect of recent years' monetary policy has benefited borrowers, adversely affected lenders and had no direct effect at all for ...
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... KEYWORDS: credit risk, income diversification, operational efficiency, credit growth, capital adequacy ratio, market structure I. INTRODUCTION The global financial crisis was triggered by hypnotic subprime mortgage crisis in United States at July 2007 with negative impact on financial industry marke ...
... KEYWORDS: credit risk, income diversification, operational efficiency, credit growth, capital adequacy ratio, market structure I. INTRODUCTION The global financial crisis was triggered by hypnotic subprime mortgage crisis in United States at July 2007 with negative impact on financial industry marke ...
Reforming the International Monetary System
... in the adjustment mechanisms between borrowing and lending countries; asymmetry in the adjustment mechanisms between the United States, whose currency lies at the centre of the current arrangement, and the rest of the world; and excessive accumulation of foreign reserves by emerging countries. Moreo ...
... in the adjustment mechanisms between borrowing and lending countries; asymmetry in the adjustment mechanisms between the United States, whose currency lies at the centre of the current arrangement, and the rest of the world; and excessive accumulation of foreign reserves by emerging countries. Moreo ...
Theoretical Analysis of the Demand for Money
... transactions are facilitated by their holdings of money, has evolved gradually over time. In this section we briefly review that evolution. While the earlier literature on the quantity theory of money contained many important insights, its emphasis was on the comparison of market equilibria rather t ...
... transactions are facilitated by their holdings of money, has evolved gradually over time. In this section we briefly review that evolution. While the earlier literature on the quantity theory of money contained many important insights, its emphasis was on the comparison of market equilibria rather t ...
Ch30-7e-lecture
... can decide to control 1. The quantity of money (the monetary base), or 2. The price of Canadian money on the foreign exchange market (the exchange rate), or 3. The opportunity cost of holding money (the short-term interest rate). The Bank can set only one of these instruments. © 2010 Pearson Educati ...
... can decide to control 1. The quantity of money (the monetary base), or 2. The price of Canadian money on the foreign exchange market (the exchange rate), or 3. The opportunity cost of holding money (the short-term interest rate). The Bank can set only one of these instruments. © 2010 Pearson Educati ...
Unit H460/2
... Towards the end of 2013 and at the start of 2014 US and UK monetary policy changed. There was a reduction in the growth of the money supply in the two countries and the prospect of a rise in interest rates in the US. This led to a significant withdrawal of short term funds from the Fragile Five. In ...
... Towards the end of 2013 and at the start of 2014 US and UK monetary policy changed. There was a reduction in the growth of the money supply in the two countries and the prospect of a rise in interest rates in the US. This led to a significant withdrawal of short term funds from the Fragile Five. In ...
Regulatory impact assessment of Basel III capital requirements in New Zealand.
... The existing minimum capital requirements for New Zealand banks, set by the Reserve Bank, are based on the international standards developed by the Basel Committee known as Basel II. In light of the global financial crisis (GFC), the Basel Committee concluded that the Basel II standards were inadequ ...
... The existing minimum capital requirements for New Zealand banks, set by the Reserve Bank, are based on the international standards developed by the Basel Committee known as Basel II. In light of the global financial crisis (GFC), the Basel Committee concluded that the Basel II standards were inadequ ...
Working Paper No. 427 Liquidity Preference Theory Revisited—To
... that liquidity preference and classical (loanable funds) theories were “equivalent.” Within the broader context of developments in post-war monetary and macroeconomic thought, this was but one element in weaving (or, “synthesizing”) Keynes’s supposedly “general” theory into the essentially unshatter ...
... that liquidity preference and classical (loanable funds) theories were “equivalent.” Within the broader context of developments in post-war monetary and macroeconomic thought, this was but one element in weaving (or, “synthesizing”) Keynes’s supposedly “general” theory into the essentially unshatter ...
Panama - Inter-American Development Bank
... well-regulated financial sector. The sector is also an important offshore center for the Region. Stress tests conducted by the Financial Sector Assessment Program (IMF) indicate that the sector is well prepared to withstand a wide range of shocks (it weathered well the global financial crisis of 200 ...
... well-regulated financial sector. The sector is also an important offshore center for the Region. Stress tests conducted by the Financial Sector Assessment Program (IMF) indicate that the sector is well prepared to withstand a wide range of shocks (it weathered well the global financial crisis of 200 ...
Zimbabwe - COMESA Monetary Institute (CMI)
... Since then, the pass through from depreciation to prices had, however, became so direct and extremely vicious, under the environment of excessive speculation. This price formation was consistent with the findings of Odedokun (1997), who concluded that currency depreciation in the official and parall ...
... Since then, the pass through from depreciation to prices had, however, became so direct and extremely vicious, under the environment of excessive speculation. This price formation was consistent with the findings of Odedokun (1997), who concluded that currency depreciation in the official and parall ...
The Extraordinary Actions taken by the Federal Reserve to Address
... authority based on Section 13(3) of the Federal Reserve Act, its basic legal authorization, which requires the Fed to make a determination that the circumstances are “unusual and exigent”. As long as the Fed is able to make this determination (and be credible to Congress and the public), these faci ...
... authority based on Section 13(3) of the Federal Reserve Act, its basic legal authorization, which requires the Fed to make a determination that the circumstances are “unusual and exigent”. As long as the Fed is able to make this determination (and be credible to Congress and the public), these faci ...
East Kingdom Exchequer Training
... site fee, record it here in the right-hand column until the date of the event (the bank account balance is debited when the check is written). On the date of the event, if no part of the site fee was refundable, the entire amount is removed from the site advance column and expensed as a site fee (wi ...
... site fee, record it here in the right-hand column until the date of the event (the bank account balance is debited when the check is written). On the date of the event, if no part of the site fee was refundable, the entire amount is removed from the site advance column and expensed as a site fee (wi ...
Optimal seigniorage and financial liberalization
... The current integration of international capital markets is creating an inescapable dilemma for governments relying on the taxation of their domestic financial sector. In the European Community (EC), in particular, competition from foreign financial markets is likely to lead to a substantial loss in ...
... The current integration of international capital markets is creating an inescapable dilemma for governments relying on the taxation of their domestic financial sector. In the European Community (EC), in particular, competition from foreign financial markets is likely to lead to a substantial loss in ...
Chapter 16: Monetary Policy
... Increasing the discount rate discourages commercial banks from obtaining additional reserves through borrowing from the Federal Reserve Banks. When the Fed raises the discount rate, it wants to restrict the money supply. ...
... Increasing the discount rate discourages commercial banks from obtaining additional reserves through borrowing from the Federal Reserve Banks. When the Fed raises the discount rate, it wants to restrict the money supply. ...
Risk-taking channel, bank lending channel and the
... uncertainties, and also because among the transmission channels of monetary policy to the economy, the credit channel is indicated by empirical evidence as being an important transmission mechanism (Bernanke and Blinder, 1992; Kashyap et al., 1993; Gertler and Gilchrist, 1993 and 1994; Kashyap and S ...
... uncertainties, and also because among the transmission channels of monetary policy to the economy, the credit channel is indicated by empirical evidence as being an important transmission mechanism (Bernanke and Blinder, 1992; Kashyap et al., 1993; Gertler and Gilchrist, 1993 and 1994; Kashyap and S ...
Van Egmond and De Vries - Sustainable Finance Model
... coordination, (monetary) economic growth by decentralized money creation brings about the unjustified euphoric herd behavior of the many private banks creating too much money, in the belief of and speculating on an ongoing rise of asset prices. The Central Bank does not have the possibility to contr ...
... coordination, (monetary) economic growth by decentralized money creation brings about the unjustified euphoric herd behavior of the many private banks creating too much money, in the belief of and speculating on an ongoing rise of asset prices. The Central Bank does not have the possibility to contr ...
Stock Market Liquidity, Financial Crisis and Quantitative Easing
... banking system strengthens overall economic growth. QE implementation in the U.S. may also impact other economies. Morgan (2011) investigates possible impacts of US QE policy on Asian economies and financial markets finding a widespread impact on other economies as well as the U.S. The FED’s impleme ...
... banking system strengthens overall economic growth. QE implementation in the U.S. may also impact other economies. Morgan (2011) investigates possible impacts of US QE policy on Asian economies and financial markets finding a widespread impact on other economies as well as the U.S. The FED’s impleme ...