The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy potx

... central bank for stimulating the economy when interest rates are stuck at zero. In the final section, we draw some conclusions on the general implications of the zero bound for monetary policy in ... WINTER 2007–2008 The Zero Bound on Nominal Interest Rates: Implications for Monetary Policy Claude Lavoie and Stephen Murchison, Research Departmen...

Ngày tải lên: 29/03/2014, 01:20

Ngày tải lên: 01/04/2014, 15:20

... ξ t ), 18 The Zero Bound on Interest Rates and Optimal Monetary Policy ∗ Gauti Eggertsson International Monetary Fund Michael Woodford Princeton University June 26, 2003 Abstract We consider the consequences ... consequences for monetary policy of the zero floor for nominal in- terest rates. The zero bound can be a significant constraint on the ability...

Ngày tải lên: 29/03/2014, 13:20

... with a prescription for monetary policy in the presence of the zero bound. In the following, we will show that such a prescription may focus on the role of base money and of the nominal exchange ... discussed above, one implication of the zero bound will be a reduction in the ef- fectiveness of monetary policy. A further important implication is that the mo...

Ngày tải lên: 22/03/2014, 23:20

... need for a conducive environment to allow for competitive trade and business. • The society strongly believes that what is good for the consumer is good for business. • It is the responsibility ... clear signals from the Central Bank of Kenya on the direction interest rates ought to take in the market, commercial banks have been slow to respond. Weeks after the...

Ngày tải lên: 15/03/2014, 02:20

... All in all, the results on the basis of the “GARCH-inspired” specification are, just as for the asymmetric specification, rather inconclusive and unable to convincingly explain the observed ... not affect the results. The coefficient of the short-term interest rate reported in the tables is similar to the one obtained when the long terms interest rate is instr...

Ngày tải lên: 15/03/2014, 14:20

... All in all, the results on the basis of the “GARCH-inspired” specification are, just as for the asymmetric specification, rather inconclusive and unable to convincingly explain the observed ... not affect the results. The coefficient of the short-term interest rate reported in the tables is similar to the one obtained when the long terms interest rate is instr...

Ngày tải lên: 22/03/2014, 23:20

... default and zero otherwise. Note that this constraint will actually bind in equilibrium and is effectively a participation constraint for the loan manager to perform the loan. Given the participation constraint, ... dollarization. Interest rate differential on deposits has a negative effect on deposit dollarization. Third, our results confirm the relevance of the minimum varia...

Ngày tải lên: 22/03/2014, 23:20

... us to extend the analysis to study the determinants of the hazard of changing the retail rates. The exploration of these determinants contains, on the one hand, information on the effect of ... proxy for the monetary policy rate and thus the more relevant one from a monetary policy transmission viewpoint. Obviously, approximating the deviation of the ob...

Ngày tải lên: 22/03/2014, 23:20

... banks has considerable implications for the macroeconomy. The examination of money and credit developments for the purposes of monetary analysis provides information on the functioning of banks’ ... unilaterally sets the level of the monetary base, i.e. the monetary base is the instrument of monetary policy. The money multiplier then determines the s...

Ngày tải lên: 16/02/2014, 11:20