Results 1 to 10 of about 307 (221)
SSRN Electronic Journal, 2010 How should monetary policy respond to a global liquidity trap, where the two countries may fall into a liquidity trap simultaneously? Using a two-country New Open Economy Macroeconomics model, we first characterise optimal monetary policy, and show that the optimal rate of inflation in one country is affected by whether or not the other country is in a
Fujiwara, Ippei +3 more
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Gradualism and Liquidity Traps [PDF]
SSRN Electronic Journal, 2016 Modifying the objective function of a discretionary central bank to include an interest-rate smoothing objective increases the welfare of an economy in which large contractionary shocks occasionally force the central bank to lower the policy rate to its effective lower bound. The central bank with an interest-rate smoothing objective credibly keeps the
Nakata, Taisuke, Schmidt, Sebastian
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Conservatism and Liquidity Traps [PDF]
SSRN Electronic Journal, 2014 Appointing Rogoff's (1985) conservative central banker improves welfare if the economy is subject to large contractionary shocks and the policy rate occasionally falls to the zero lower bound (ZLB). In an economy with occasionally binding ZLB constraints, the anticipation of future ZLB episodes creates a trade-off between inflation
Nakata, Taisuke, Schmidt, Sebastian
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Avoiding Liquidity Traps [PDF]
SSRN Electronic Journal, 2000 Once the zero bound on nominal interest rates is taken into account, Taylor-type interest-rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate fluctuations driven by arbitrary revisions in expectations. These undesirable equilibria exhibit the essential features of liquidity traps, as monetary policy is
Jess Benhabib +2 more
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Typology of corporate liquidity managers from behavioral finance perspective
Acta Universitatis Lodziensis. Folia Oeconomica, 2016 The paper presents a typology of professionals who deal with liquidity management in enterprises and is based on meta analysis of the results of the qualitative research led by the author.
Dominika Korzeniowska
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Liquidity traps, learning and stagnation [PDF]
European Economic Review, 2008 We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead to deflationary spirals with falling prices and falling ...
Evans, George W., 1949- +2 more
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Reputation and liquidity traps [PDF]
Review of Economic Dynamics, 2014 Can the central bank credibly commit to keeping the nominal interest rate low for an extended period of time in the aftermath of a deep recession? By analyzing credible plans in a sticky-price economy with occasionally binding zero lower bound constraints, I find that the answer is yes if contractionary shocks hit the economy with sufficient frequency.
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Liquidity traps, capital flows [PDF]
Journal of International Economics, 2018 Abstract Motivated by debates surrounding international capital flows during the Great Recession, we conduct a positive and normative analysis of capital flows when a region of the global economy experiences a liquidity trap. Capital flows reduce inefficient output fluctuations in this region by inducing exchange rate movements that reallocate ...
Acharya, Sushant, Bengui, Julien
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Determinate liquidity traps [PDF]
Economics Letters, 2015 I study the long run determinacy tradeoff - recurrent episodes of passive monetary policy are (in)determinate if their expected duration is long (brief ) - when passive pol- icy is at the zero bound. On-going regime change implies qualitatively different shock transmission from the standard New Keynesian model. For U.S.
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Bond Premium Cyclicality and Liquidity Traps [PDF]
SSRN Electronic Journal, 2020 Abstract Safe asset shortages can expose an economy to liquidity traps. The nature of these traps is determined by the cyclicality of the bond premium. A counter-cyclical bond premium opens the possibility of expectations-driven liquidity traps in which small issuances of government debt crowd out private debt and reduce output.
Caramp, Nicolas, Singh, Sanjay R
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