Corporate debt and unconventional monetary policy: The risk-taking channel with bond and loan contracts

2021 ◽  
Author(s):  
Sumiko Takaoka ◽  
Koji Takahashi
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Corporate Debt ◽  
Unconventional Monetary Policy ◽  
Loan Contracts

Unconventional monetary policy and bank risk taking

2020 ◽  
Vol 109 ◽  
pp. 102233
Author(s):  
Thomas Matthys ◽  
Elien Meuleman ◽  
Rudi Vander Vennet
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk ◽  
Unconventional Monetary Policy

scholarly journals Spillovers of US unconventional monetary policy: quantitative easing, spreads, and international financial markets

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Zekeriya Yildirim ◽  
Mehmet Ivrendi
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Risk Taking ◽  
Large Scale ◽  
Emerging Market ◽  
Spillover Effects ◽  
International Financial Markets ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
The Us

AbstractThis study investigates the international spillover effects of US unconventional monetary policy (UMP)—frequently called large-scale asset purchases or quantitative easing (QE)—on advanced and emerging market economies, using structural vector autoregressive models with high-frequency daily data. Blinder (Federal Reserve Bank of St. Louis Rev 92(6): 465–479, 2010) argued that the QE measures primarily aim to reduce US interest rate spreads, such as term and risk premiums. Considering this argument and recent empirical evidence, we use two spreads as indicators of US UMP: the mortgage and term spreads. Based on data from 20 emerging and 20 advanced countries, our empirical findings reveal that US unconventional monetary policies significantly affect financial conditions in emerging and advanced countries by altering the risk-taking behavior of investors. This result suggests that the risk-taking channel plays an important role in transmitting the effects of these policies to the rest of the world. The extent of these effects depends on the type of QE measures. QE measures such as purchases of private sector securities that lower the US mortgage spread exert stronger and more significant spillover effects on international financial markets than those that reduce the US term spread. Furthermore, the estimated financial spillovers vary substantially across countries and between and within the emerging and advanced countries that we examine in this study.

scholarly journals Unconventional Monetary Policy and Risk-Taking: Evidence from Agency Mortgage REITs

2018 ◽  
Author(s):  
W. Scott Frame ◽  
Eva Maria Steiner
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Unconventional Monetary Policy

scholarly journals Unconventional Monetary Policy and Risk-Taking: Evidence from Agency Mortgage REITs

2018 ◽  
Author(s):  
Scott Frame ◽  
Eva Steiner
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Unconventional Monetary Policy

Sooner or Later: Timing of Monetary Policy with Heterogeneous Risk-Taking

2016 ◽  
Vol 106 (5) ◽  
pp. 490-495 ◽  
Author(s):  
Dong Beom Choi ◽  
Thomas M. Eisenbach ◽  
Tanju Yorulmazer
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Heterogeneous Agents ◽  
Liquidity Risk ◽  
Unconventional Monetary Policy ◽  
Targeted Interventions ◽  
Ex Post ◽  
Ex Ante ◽  
Discount Window ◽  
Transmission Of Monetary Policy

We analyze the effects and interactions of monetary policy tools that differ in terms of their timing and their targeting. In a model with heterogeneous agents, more productive agents endogenously expose themselves to higher interim liquidity risk by borrowing and investing more. Two inefficiencies impair the transmission of monetary policy: an investment- and a hoarding inefficiency. Heterogeneous agents respond disparately to ex-ante, conventional and ex-post, unconventional monetary policy. However, we show that the two policies are equivalent due to the endogeneity of hoarding. In contrast, targeted interventions such as discount-window lending can alleviate both inefficiencies at the same time.

Unconventional Monetary Policy and Bank Risk Taking

2018 ◽  
Author(s):  
Thomas Matthys ◽  
Elien Meuleman ◽  
Rudi Vander Vennet
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Bank Risk ◽  
Unconventional Monetary Policy

Unconventional Monetary Policy and U.S. Housing Markets Dynamics

2015 ◽  
Author(s):  
Yao-Min Chiang ◽  
Jarjisu Sa-Aadu ◽  
James D. Shilling
Keyword(s):  
Monetary Policy ◽  
Housing Markets ◽  
Unconventional Monetary Policy
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