further evidence of the liquidity effect, Applied Economics. 31, 743-754.Kim, Benjamin J. C. and Ghazali, Noor A., "Has the Liquidity Effect of Money Shocks on Interest Rates Really Vanished?: Further Evidence on the Liquidity Effect," mimeo, Department of Economics, University of Nebraska-...
Modeling the Liquidity Effect: The Limited Participation Modeldoi:10.2139/ssrn.1082874A tractable limited participation model is developed in order to demonstrate the liquidity effect on interest rates and output. It is also shown that this modelSocial Science Electronic Publishing...
Using daily bid and ask prices of euro (€) interest rate caps/floors, we document a negative effect of liquidity on option prices – illiquid options trade at higher prices relative to liquid options, after controlling for the volatility smile and term structure variables. This is opposite to...
Without this restriction, there would be no liquidity effect, as interest rates would rise rather than fall in response to an easing of monetary policy due to higher anticipated inflation. A bond market that enables households to lend directly to firms is shown to provide a mechanism that ...
This paper shows in popular monetary models that although the Fed can have an immediate effect on interest rates purely by announcing a change in the target without changing reserves, these models imply that by the end of the maintenance period, one should see some combination of a drop in ...
The coinsurance clause will only be in effect at the event ofpropertyloss. During a loss, the insurance limit and the required amount to be used for insurance based on the coinsurance percentage are compared and must have a ratio equal to or greater than one, else, a penalty will be given...
A. is purely a function of income, and interest rates have no effect on the demand for money. B. is purely a function of interest rates, and income has no effect on the demand for money. C. is a function of both income and interest rates. D. is a function of both government spend...
Furthermore, and using the proxy of bank deposit assets, the liquidity effect is accepted in the low inflation regime, whereas it is rejected in the high inflation regime. Hence, the threshold behavior offers an interesting alternative for explaining the relationship between interest rates and ...
The Vanishing Liquidity Effect of Money on Interest: Analysis and Implications for Policy This paper seeks to re-examine the effects of money on interest rates. The earlier literature on this topic determined, fairly well, the pattern of respons... M Melvin - 《Economic Inquiry》 被引量: 133...
Our estimates serve to illustrate this point: The effect of NIRP through EL on banks’ loan creation lies between 12% and 15% (depending on the model) of the observed quarterly lending by high deposit banks. The average EL inflow for high deposit banks during NIRP was 744 million euros ...