22
result(s)
Optimal Monetary and Macroprudential Policies
Staff Working Paper 2021-21
Josef Schroth
Macroprudential policy should aim for bank balance sheets that are larger and safer during normal times but smaller and riskier during financial crises. During recoveries from financial crises, monetary policy should complement macroprudential policy by being less expansive than what would be required to close the labour gap.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial stability,
Financial system regulation and policies,
Inflation targets,
Monetary policy
JEL Code(s):
E,
E4,
E44,
E6,
E60,
G,
G2,
G21,
G28
Complementarities Between Fiscal Policy and Monetary Policy—Literature Review
Staff Discussion Paper 2021-4
Wei Dong,
Geoffrey R. Dunbar,
Christian Friedrich,
Dmitry Matveev,
Romanos Priftis,
Lin Shao
This paper surveys and summarizes the literature on how fiscal policy and monetary policy can complement each other in stabilizing economic activity.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Fiscal policy,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E62,
E63
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
Strengthening Inflation Targeting: Review and Renewal Processes in Canada and Other Advanced Jurisdictions
Staff Discussion Paper 2020-7
Robert Amano,
Thomas J. Carter,
Lawrence L. Schembri
We summarize the review and renewal process at four central banks (Reserve Bank of New Zealand, Bank of England, Sveriges Riksbank and the US Federal Reserve Bank) and compare them with the process at the Bank of Canada, which has been well-established since 2001.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E5,
E52,
E58
Average is Good Enough: Average-inflation Targeting and the ELB
Staff Working Paper 2020-31
Robert Amano,
Stefano Gnocchi,
Sylvain Leduc,
Joel Wagner
The Great Recession and current pandemic have focused attention on the constraint on nominal interest rates from the effective lower bound.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E32,
E5,
E52
Multi-Product Pricing: Theory and Evidence from Large Retailers in Israel
Staff Working Paper 2020-12
Marco Bonomo,
Carlos Carvalho,
Oleksiy Kryvtsov,
Sigal Ribon,
Rodolfo Rigato
Standard theories of price adjustment are based on the problem of a single-product firm, and therefore they may not be well suited to analyze price dynamics in the economy with multiproduct firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Market structure and pricing,
Monetary policy
JEL Code(s):
D,
D2,
D21,
D22,
E,
E3,
E31,
E5,
E52,
L,
L1,
L11
The Power of Helicopter Money Revisited: A New Keynesian Perspective
Staff Discussion Paper 2020-1
Thomas J. Carter,
Rhys R. Mendes
We analyze money financing of fiscal transfers (helicopter money) in two simple New Keynesian models: a “textbook” model in which all money is non-interest-bearing (e.g., all money is currency), and a more realistic model with interest-bearing reserves.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Credibility,
Economic models,
Fiscal policy,
Inflation targets,
Interest rates,
Monetary policy,
Monetary policy and uncertainty,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
E,
E1,
E12,
E4,
E41,
E43,
E5,
E51,
E52,
E58,
E6,
E61,
E63
Managing GDP Tail Risk
Staff Working Paper 2020-3
Thibaut Duprey,
Alexander Ueberfeldt
Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Economic models,
Financial stability,
Financial system regulation and policies,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
D,
D8,
E,
E4,
E44,
E5,
E52,
E58,
G,
G0,
G01
Social Learning and Monetary Policy at the Effective Lower Bound
Staff Working Paper 2020-2
Jasmina Arifovic,
Alex Grimaud,
Isabelle Salle,
Gauthier Vermandel
This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Credibility,
Economic models,
Monetary policy,
Monetary policy communications
JEL Code(s):
C,
C8,
C82,
E,
E3,
E32,
E5,
E52