Title of article
A modelofunconventionalmonetarypolicy
Author/Authors
Mark Gertler، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2011
Pages
18
From page
17
To page
34
Abstract
We developaquantitativemonetaryDSGEmodelwithfinancialintermediariesthat
face endogenouslydeterminedbalancesheetconstraints.Wethenusethemodelto
evaluatetheeffectsofthecentralbankusingunconventionalmonetarypolicyto
combatasimulatedfinancialcrisis.Weinterpretunconventionalmonetarypolicyas
expandingcentralbankcreditintermediationtooffsetadisruptionofprivatefinancial
intermediation.Withinourframeworkthecentralbankislessefficientthanprivate
intermediariesatmakingloansbutithastheadvantageofbeingabletoelastically
obtain fundsbyissuingrisklessgovernmentdebt.Unlikeprivateintermediaries,itisnot
balance sheetconstrained.Duringacrisis,thebalancesheetconstraintsonprivate
intermediariestighten,raisingthenetbenefitsfromcentralbankintermediation.These
benefitsmaybesubstantialevenifthezerolowerboundconstraintonthenominal
interest rateisnotbinding.Intheeventthisconstraintisbinding,though,thesenet
benefitsmaybesignificantlyenhanced.
Journal title
Journal of Monetary Economics
Serial Year
2011
Journal title
Journal of Monetary Economics
Record number
846451
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