Should Unconventional Monetary Policies Become Conventional?

Dominic Quint and Pau Rabanal

VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking from Verein für Socialpolitik / German Economic Association

Abstract: After the recent crisis, central banks deployed unconventional monetary policies (UMP) to affect credit conditions and to provide liquidity at a large scale. We study if UMP should still be used when economic conditions normalize. Using an estimated non-linear DSGE model with a banking sector and long-term debt for the US, we show that the benefits of using UMP in normal times are substantial. However, the benefits are shock-dependent and mostly arise when the economy is hit by financial shocks.

JEL-codes: C32 E32 E52 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cta, nep-dge, nep-mac and nep-mon
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

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https://www.econstor.eu/bitstream/10419/168218/1/VfS-2017-pid-3265.pdf (application/pdf)

Related works:
Working Paper: Should Unconventional Monetary Policies Become Conventional? (2017)
Working Paper: Should Unconventional Monetary Policies Become Conventional? (2017)
Working Paper: Should unconventional monetary policies become conventional? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc17:168218

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