Liquidity Effects and Interest Rates
2020 ◽
pp. 116-132
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This chapter develops a version of the liquidity model which relies on cash-in-advance constraints for both households and firms. Monetary injections are show to raise employment and lower short-term interest rates, at least initially. A quantitative version of the model is developed and we discuss on to simulate the model on the computer. Finally we discuss how we can modify our model to make a role for quantitative easing by the central bank.
2018 ◽
Keyword(s):
2005 ◽
Vol 6
(1)
◽
pp. 95-130
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2018 ◽
Vol 40
(3)
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pp. 335-351
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Keyword(s):
2019 ◽
pp. 435-454
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Keyword(s):
2020 ◽
Vol 3
(1)
◽
pp. 1-15
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