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370
result(s)
The Side Effects of Safe Asset Creation
Staff Working Paper 2021-34
Sushant Acharya,
Keshav Dogra
The secular decline in real interest rates has created a challenge for monetary policy, now confronting the zero lower bound more often. An increase in the supply of safe assets reduces downward pressure on the natural interest rate. This allows monetary policy to reach price stability and full employment, but not without cost—permanently lower investment.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Monetary policy implementation
JEL Code(s):
E,
E3,
E4,
E5,
G,
G1,
H,
H6
Secular Economic Changes and Bond Yields
Staff Working Paper 2021-14
Bruno Feunou,
Jean-Sébastien Fontaine
We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Interest rates,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E4,
E43,
G,
G1,
G12
Monetary Policy Pass-Through with Central Bank Digital Currency
Staff Working Paper 2021-10
Janet Hua Jiang,
Yu Zhu
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy transmission
JEL Code(s):
E,
E5,
E50,
E52
(Optimal) Monetary Policy with and without Debt
Staff Working Paper 2021-5
Boris Chafwehé,
Rigas Oikonomou,
Romanos Priftis,
Lukas Vogel
How should policy be designed at high debt levels, when fiscal authorities have little room to adjust taxes? Assigning the monetary authority a role in achieving debt sustainability makes it less effective in stabilizing inflation and output.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Fiscal policy,
Monetary policy,
Monetary policy framework
JEL Code(s):
C,
C1,
C11,
E,
E3,
E31,
E5,
E52,
E58,
E6,
E62
Networking the Yield Curve: Implications for Monetary Policy
Staff Working Paper 2021-4
Tatjana Dahlhaus,
Julia Schaumburg,
Tatevik Sekhposyan
We study how different monetary policies affect the yield curve and interact. Our study highlights the importance of the spillover structure across the yield curve for policy-making.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Interest rates,
Monetary policy implementation
JEL Code(s):
C,
C1,
C18,
C2,
C21,
C5,
C53,
E,
E4,
E43,
E44,
E5,
E52
Chinese Monetary Policy and Text Analytics: Connecting Words and Deeds
Staff Working Paper 2021-3
Jeannine Bailliu,
Xinfen Han,
Barbara Sadaba,
Mark Kruger
What are the main drivers behind the monetary policy reaction function of the People’s Bank of China?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
International topics,
Monetary policy communications,
Monetary policy framework
JEL Code(s):
C,
C6,
C63,
E,
E5,
E52,
E58
Qualitative Field Research in Monetary Policy Making
Staff Discussion Paper 2021-1
Chris D'Souza,
Jane Voll
Central banks conduct research involving in-depth interviews with external parties—but little is known about how this information affects monetary policy. We address this gap by analyzing open-ended interviews with senior central bank economic and policy staff who work closely with policy decision-makers.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Monetary policy,
Monetary policy and uncertainty
JEL Code(s):
C,
C8,
C83,
E,
E3,
E37,
E5,
E52
Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature
Staff Discussion Paper 2020-16
Grahame Johnson,
Sharon Kozicki,
Romanos Priftis,
Lena Suchanek,
Jonathan Witmer,
Jing Yang
This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Monetary policy,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E63
Can the Business Outlook Survey Help Improve Estimates of the Canadian Output Gap?
Staff Discussion Paper 2020-14
Calista Cheung,
Luke Frymire,
Lise Pichette
We investigate whether questions in the Bank of Canada’s Business Outlook Survey can provide useful signals for the output gap.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Economic models,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E3