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The central-bank balance sheet as an instrument of monetarypolicy
Vasco Cúrdia ()
Michael Woodford , 2011, vol. 58, issue 1, pages 54-79
Journal of Monetary Economics Abstract:
We extend a standard New Keynesian model to allow an analysis of "unconventional" dimensions of policy alongside traditional interest-rate policy. We find that quantitative easing in the strict sense is likely to be ineffective, but that targeted asset purchases by a central bank can instead be effective when financial markets are sufficiently disrupted, and we discuss the conditions under which such interventions increase welfare. We also discuss optimal policy with regard to the payment of interest on reserves.
Keywords: Credit; policy; Quantitative; easing; Zero; lower; bound; Interest; on; reserves (search for similar items in EconPapers)
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Related works: Working Paper: The Central Bank Balance Sheet as an Instrument of Monetary Policy (2010) Working Paper: The central-bank balance sheet as an instrument of monetary policy (2010) Working Paper: The Central-Bank Balance Sheet as an Instrument of Monetary Policy (2010) Working Paper: The Central Bank's Balance Sheet as an Instrument of Monetary Policy (2010) Working Paper: The Central-Bank Balance Sheet as an Instrument of Monetary Policy This item may be available elsewhere in EconPapers: Search for items with the same title.
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Persistent link: http://EconPapers.repec.org/RePEc:eee:moneco:v:58:y:2011:i:1:p:54-79
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