Economia
UNCONVENTIONAL MONETARY POLICY
IN THEORY AND IN PRACTICE
by Martina Cecioni*, Giuseppe Ferrero* and Alessandro Secchi*
Abstract
In this paper, after discussing the theoretical underpinnings of unconventional
monetary policy measures, we review the existing empirical evidence on their effectiveness,
focusing on those adopted by the European Central Bank and by the Federal Reserve. These
measures operate in two ways: through the signalling channel and through the portfoliobalance
channel. In the former, the central bank can use communication to steer interest rates
and to restore confidence in the financial markets; the latter hinges on the hypothesis of
imperfect substitutability of assets and liabilities in the balance sheet of the private sector
and postulates that the central bank’s asset purchases and liquidity provision lower financial
yields and improve funding conditions. The review of the empirical literature suggests that
the unconventional measures were effective and that their impact on the economy was
sizeable. However, a very large degree of uncertainty surrounds the precise quantification of
these effects.
Mais
Veja também:
Economic research showed years ago that targeting nominal G.D.P. has important advantages. But in the 1990s, many central banks adopted inflation targeting, a simpler alternative. As distress over the dismal state of the economy has grown, however, many economists have returned to the logic of targeting nominal G.D.P.
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The Fallacy of Nominal GDP Targeting By Detlev S Schlichter "... Münchau is an advocate of nominal GDP targeting, the new fad in monetary central planning. There is allegedly nothing wrong with monetary policy. The central bankers...
- Simposio Em Rio Sobre O Futuro De Bancos Centrais
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How Flexible Can Inflation Targeting Be and Still Work? Kenneth N. Kuttner and Adam S. Posen Abstract This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy...
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How Flexible Can Inflation Targeting Be and Still Work? Kenneth N. Kuttner and Adam S. Posen Abstract This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy...
Economia
Política monetária em debate
UNCONVENTIONAL MONETARY POLICY
IN THEORY AND IN PRACTICE
by Martina Cecioni*, Giuseppe Ferrero* and Alessandro Secchi*
Abstract
In this paper, after discussing the theoretical underpinnings of unconventional
monetary policy measures, we review the existing empirical evidence on their effectiveness,
focusing on those adopted by the European Central Bank and by the Federal Reserve. These
measures operate in two ways: through the signalling channel and through the portfoliobalance
channel. In the former, the central bank can use communication to steer interest rates
and to restore confidence in the financial markets; the latter hinges on the hypothesis of
imperfect substitutability of assets and liabilities in the balance sheet of the private sector
and postulates that the central bank’s asset purchases and liquidity provision lower financial
yields and improve funding conditions. The review of the empirical literature suggests that
the unconventional measures were effective and that their impact on the economy was
sizeable. However, a very large degree of uncertainty surrounds the precise quantification of
these effects.
Mais
Veja também:
Economic research showed years ago that targeting nominal G.D.P. has important advantages. But in the 1990s, many central banks adopted inflation targeting, a simpler alternative. As distress over the dismal state of the economy has grown, however, many economists have returned to the logic of targeting nominal G.D.P.
Mais
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- Estabilidade Financeira E Política Monetária
Financial Stability and Monetary Policy: How Closely Interlinked? by Frank Smets European Central Bank Abstract The recent financial crisis has again raised the question to what extent price-stability-oriented monetary policy frameworks should take...
- O Pib Nominal Como Meta Da Política Monetária
The Fallacy of Nominal GDP Targeting By Detlev S Schlichter "... Münchau is an advocate of nominal GDP targeting, the new fad in monetary central planning. There is allegedly nothing wrong with monetary policy. The central bankers...
- Simposio Em Rio Sobre O Futuro De Bancos Centrais
The Future of Central Banking: Inflation Targeting versus Financial Stability The Challenge The global financial crisis 2008-2009 led to a profound rethinking of the pre-crisis monetary policy consensus. Since the great moderation...
- Política Monetária De Metas De Inflação
How Flexible Can Inflation Targeting Be and Still Work? Kenneth N. Kuttner and Adam S. Posen Abstract This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy...
- Política De Metas De Inflação
How Flexible Can Inflation Targeting Be and Still Work? Kenneth N. Kuttner and Adam S. Posen Abstract This paper takes up the issue of the flexibility of inflation targeting regimes, with the specific goal of determining whether the monetary policy...