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The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma

November 12, 2018 Bilal 0

The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma https://ift.tt/2JzTsVk The Expansionary Lower Bound: Contractionary Monetary Easing and the Trilemma Author/Editor: Paolo Cavallino ; Damiano Sandri Publication Date: November 2, 2018 Electronic Access: Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Summary: We provide […]

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A Survey of the Empirical Literature on U.S. Unconventional Monetary Policy (2016)

September 2, 2018 Bilal 0

https://s3.amazonaws.com/real.stlouisfed.org/wp/2016/2016-021.pdf Abstract: This paper reviews and critically evaluates the empirical literature on the effects of U.S. unconventional monetary policy on both financial markets and the real economy. In order to understand how such policies could work, we also briefly review the literature on the theory of such policies. We show that event studies provide very strong evidence that U.S. unconventional policy announcements have strongly influenced international bond yields, exchange rates, and equity prices in the desired manner. In addition, such studies indicate that such policies curtailed market perceptions of extreme events. Calibrated modeling and vector autoregressive (VAR) exercises strongly suggest […]

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Exchange rate behaviour when interest rates are negative: The evidence

September 2, 2018 Bilal 0

https://voxeu.org/article/exchange-rate-behaviour-when-interest-rates-are-negative VOX  CEPR Policy Portal Research-based policy analysis and commentary from leading economists Create account | Login | Subscribe Search form Columns By Topic By Date By Reads By Tag Video Vox Vox Talks Publications Blogs&Reviews People Debates Events About Exchange rate behaviour when interest rates are negative: The evidence Allaudeen Hameed, Andrew Rose 27 October 2016 Recently a number of both small and large economies have experienced negative nominal interest rates. This column uses exchange rate data from 2010 to 2016 to demonstrate that negative interest rates seem to have little effect on observable exchange rate behaviour in these economies. […]

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FEDS 2018-058: Oil, Equities, and the Zero Lower Bound

September 2, 2018 Bilal 0

FEDS 2018-058: Oil, Equities, and the Zero Lower Bound https://ift.tt/2OGYbpC FEDS 2018-062 August 2018 Abstract: The Phillips curve has been much flatter in the past twenty years than in the preceding decades. We consider two hypotheses. One is that prices at the microeconomic level are stickier than they used to be—in the context of the canonical Calvo model, firms are adjusting prices less often. The other is that the expectations of firms and households about future inflation are now less well informed by macroeconomic conditions; because expectations are important in the setting of current-period prices, inflation is therefore less sensitive […]