Chapter 1: Balance Sheet Recession Theory --- Basic Concepts In the first chapter ofThe Escape from Balance Sheet Recession and the QE Trap, Koo introduces the concept ofBalance Sheet Recession (BSR), and proposes a remedy for the recession:Fiscal Stimulus. In this article, I would like to ...
balance sheetrecessionSummary This chapter examines the effectiveness of inflation targets and other unorthodox monetary policy tools, which have gained many adherents in the past decade, in boosting the number of private sector borrowers in a balance sheet recession. It should be noted that the ...
Eric Rosengren, president of the Federal Reserve Bank of Boston, said that in a hypothetical next recession, many central banks may have little room to reduce short-term rates, and this will likely generate an increased need to utilize the balance sheet as a stimulative tool of monetary policy...
Thanks to this David Leonhardtarticle, the balance sheet recession view is once again getting muchdiscussion. This view holds that households acquired excessive amount of debt during the housing boom, the value of their assets plummeted during the crash, and now their balance sheet are in need of...
When they want to restrict growth, they let assets roll off and shrink their balance sheet.The balance sheet has drawn national attention since the Great Recession. In November 2008, then-Fed Chairman Ben Bernanke faced a financial panic. The Fed reduced interest rates to virtually zero, ...
Thus, the Federal Reserve turned to unconventional monetary policies. Through ... KN Kuttner - 《Journal of Economic Perspectives》 被引量: 6发表: 2018年 The 2009 social balance sheet The impact of the economic recession on employment is reflected in the information gleaned from social balance ...
It also implies “balance sheet recessions” are a byproduct of nominal income shortfalls. One policy implication, then, is that the Fed should have maintained aggregate nominal income growth at its expected path. It failed to do so in 2008 and has yet to fully make up for this shortfall....
Summary A balance sheet recession represents the aftermath of major blunders made by the private sector during an asset price bubble, and the price for treating the resulting injury is never small. But at the same time, it takes decades or longer for the next balance sheet recession of this ...
In order to stimulate growth, the Fed bought Treasury and mortgage-backed bonds on an unprecedented scale during and after the 2007-2009 recession to help keep interest rates low. "Many participants emphasized that reduce the size of the balance sheet should be conducted in a passive and predict...
TheWorldinBalanceSheetRecession: WhatPost-2008UnitedStates,Europe,and ChinaCanLearnfromJapan,1990–2005 RichardC.Koo ChiefEconomist NomuraResearchInstitute Tokyo Japanhasexperiencedealingwiththetypeofbalancesheetrecessionthatisthreateningthe financialstabilityofnationsaroundtheworld.Chinahaslearneditslessonsandisprosper...