The central-bank balance sheet as an instrument of monetarypolicy
Vasco Cúrdia () and
Michael Woodford ()
Journal of Monetary Economics, 2011, vol. 58, issue 1, pages 54-79
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)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (164) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
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)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:eee:moneco:v:58:y:2011:i:1:p:54-79
Access Statistics for this article
Journal of Monetary Economics is currently edited by R. G. King and C. I. Plosser
More articles in Journal of Monetary Economics from Elsevier
Series data maintained by Shamier, Wendy ().