FollowingTaylor (1993, 1999b), I take a properly calibrated version of the previous rule as a rough approximation to actualmonetary policyin the United States. Much of the recent literature on nominalrigiditiesandlabor marketfrictions has also adopted an interest rate rule similar toEq. (17), e...
Havrilesky, Thomas (1994) "Outside Influences on Monetary Policy: A Summary of Recent Findings" Contemporary Economic Policy v. 12(1), pp. 46-51.Havrilesky, T. (1994). "Outside Influences on Monetary Policy: A Summary of Recent Findings." Contemporary Economic Policy 12(1): 46-51....
The recent switch from traditional open-market operations to credit-oriented balance sheet policy does not fundamentally change the logic of “Cantillon effects.” By paying interest rates on bank reserves parked at the central bank, the Fed can now ensure the demand for such reserves is perfectly...
As Jiang and Wang (2017) outline, the transparency of monetary policies has increased significantly in recent years, consistent with one of the major roles of monetary policy itself: to sustain financial stability. With this increased transparency, the examination of announcements by central facilities...
Much of the commentary on the "zero bound problem" has focused on what policy options the Federal Reserve would have and whether they would be effective if further monetary stimulus was needed. Additionally, while the recent discussion has been mostly hypothetical, some commentators have suggested...
Oil Shocks and Aggregate Macroeconomic Behavior: The Role of Monetary Policy: A Comment Abstract A recent paper by Bernanke, Gertler, and Watson (1997) suggests that monetary policy could be used to eliminate any recessionary consequences of a... JD Hamilton,AM Herrera - 《Journal of Money Cred...
Following recent studies (Darmouni and Rodnyansky, 2017; Luck and Zimmermann, 2020), we first use cross-sectional differences in the proportion of bank bond holdings to identify the impact of MLF on bank lending based on bank-level data. The results show that after MLF's launch, banks with...
that the financial sector partly shoulders the blame for the recent run-on inflation, in as far as the government is concerned. The decree had disastrous consequences on business to a level that the central bank had to issue various circulars to justify and exempt various commodities in the ...
Short sections of text not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including What policy rule should a central bank follow? Recent years have seen a resurgence of theoretical research on this classic question. Most of this work has built on ...
Unconventional monetary policy measures have been the most modern form of policymaking by monetary authorities in advanced economies that have been hit by the recent global financial crisis. Unconventional action taking mainly acts by balance sheet enlargement (QE) or alterations in the composition of ...