scholarly journals An Event Study of COVID-19 Central Bank Quantitative Easing in Advanced and Emerging Economies

2022 ◽  
pp. 291-322
Author(s):  
Alessandro Rebucci ◽  
Jonathan S. Hartley ◽  
Daniel Jiménez
Keyword(s):  
Central Bank ◽  
Event Study ◽  
Emerging Economies ◽  
Quantitative Easing

Europäische Zentralbank: kontraproduktive unkonventionelle Geldpolitik und der Euro-Wechselkurs / European Central Bank: counter-productive unconventional monetary policy and the exchange rate

ORDO ◽  
2014 ◽  
Vol 65 (1) ◽  
Author(s):  
Ansgar Belke
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Central Bank ◽  
European Central Bank ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
European Central ◽  
The Exchange Rate ◽  
Europäische Zentralbank

ZusammenfassungDie EZB sollte der Versuchung widerstehen, die Deflationsgefahr in der Eurozone durch zusätzliche Varianten unkonventioneller Geldpolitik (z.B. „Quantitative Easing“) zu bekämpfen. Was in den USA oder in Großbritannien geklappt haben mag, wird in der Eurozone nicht funktionieren. Es besteht gar die Gefahr einer Deflationsspirale, wie dieser Beitrag zeigt. Eingebettet werden die Argumente in die aktuelle Debatte um den „zu starken“ Euro.

Money creation in the modern economy: an appraisal

2021 ◽  
Vol 9 (1) ◽  
pp. 43-60
Author(s):  
Jacob Stevens ◽  
Keyword(s):  
Central Bank ◽  
Money Supply ◽  
Central Banks ◽  
Quantitative Easing ◽  
Digital Currency ◽  
Modern Economy ◽  
Money Creation ◽  
Floor System ◽  
Selection Of

This paper models a representative bank, and uses this model to explore the assumptions and implications of a selection of money-creation theories. It is shown that the money-supply process tends toward the logic of exogeneity as banks' fears about liquidity stress increases. At present, banks do not fear liquidity stress because central banks are operating under a floor system with a superabundance of reserves following unsterilized quantitative easing. Secondly, a role for a ‘central-bank digital currency’ is suggested as a useful complement to reserves policy in an economy with large or collusive banks.

Monetary Theory: Overview and Liquidity Extensions

2016 ◽  
Author(s):  
Guillermo Calvo
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Price Level ◽  
Central Banks ◽  
Linear Constraints ◽  
Relative Price ◽  
Monetary Theory ◽  
Quantitative Easing ◽  
Liquidity Shock ◽  
New Crop

The chapter points out some deficiencies of the mainstream model utilized by many central banks. It also reviews the Fiscal Theory of the Price level. Extending the barebones version of the central banks' model presented here to the case in which "land" is endowed with liquidity, the chapter shows, among other things, that if land is subject to Liquidity Crunch, increasing the supply of liquidity by pump-priming high-powered money fails to send land's relative price back to pre-liquidity-shock level. This helps to give a rationale for Quantitative Easing in which the central bank purchases "toxic assets" with high-powered money. The chapter includes extensions to account for banks and liquidity as a factor of production, and it ends with a critique of the new crop of financial crisis models, especially those stressing non-linear constraints.

Central bank transparency and the interest rate channel: Evidence from emerging economies

2015 ◽  
Vol 48 ◽  
pp. 167-174 ◽  
Author(s):  
Stephanos Papadamou ◽  
Moïse Sidiropoulos ◽  
Eleftherios Spyromitros
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Emerging Economies ◽  
Central Bank Transparency ◽  
The Interest Rate ◽  
Interest Rate Channel

scholarly journals The Effects of Quantitative Easing Announcements on the Mortgage Market: An Event Study Approach

2019 ◽  
Vol 7 (1) ◽  
pp. 9 ◽  
Author(s):  
Gang Wang
Keyword(s):  
Interest Rates ◽  
Event Study ◽  
The United States ◽  
Mortgage Market ◽  
Quantitative Easing ◽  
Study Approach ◽  
Mortgage Rate ◽  
Mortgage Securities ◽  
The Impact ◽  
T Distribution

This paper uses event study analysis to estimate the impact of the United States Federal Reserve Bank’s (Fed) quantitative easing (QE) announcements on the mortgage market during the zero lower bound (ZLB) period. A total of 35 QE announcements are identified and their effects are evaluated. The best-fitting integrated generalized autoregressive conditional heteroskedasticity (IGARCH) model with skewed t distribution is used to measure the QE announcement effects on daily changes of the 30-year mortgage rate, the 30-year Treasury rate and the spread between them. Announcements suggesting the start of a new round of QE reduced the mortgage rate tremendously, while the effects of further news diminished. Announcements of an increase in mortgage-backed security purchases decreased the mortgage rate more than the Treasury rate and reduced the credit risk of holding mortgage securities over Treasury securities. The delayed effects of QE announcements on the mortgage rate were less than short-run effects but persistent. We also find that the previous literature overestimates QE effects on interest rates in general.

The Liquidity Trap, Democracy and Central Bank Independence

2014 ◽  
Vol 61 (1) ◽  
pp. 16-29
Author(s):  
Lucian Croitoru
Keyword(s):  
Financial Crisis ◽  
Central Bank ◽  
Developed Countries ◽  
Central Banks ◽  
Central Bank Independence ◽  
The Other ◽  
Quantitative Easing ◽  
Potential Conflict ◽  
Liquidity Trap ◽  
Other Hand

Abstract In the wake of the financial crisis, central banks in developed countries performed unconventional operations that are fiscal in nature. On one hand, we support the view that such operations, which are not fully democratic, might lead to loss of central bank operational independence and discuss some difficulties that central banks might face when reversing quantitative easing. On the other hand, we show that, in the middle of a financial crisis, such operations are best performed by central banks. To avoid this potential conflict, the society needs to identify the best means by which the responsibility for quasi-fiscal operations implemented by the central bank is transferred to a democratic structure

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