Effectiveness and addictiveness of quantitative easing

• 成果类型: Article
• 署名作者: Karadi, Peter; Nakov, Anton
• 署名单位: European Central Bank; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2020.09.002
• 发表日期: 2021
• 关键词: Large-scale asset purchases; Balance-Sheet-Constrained banks

摘要

This paper analyzes optimal asset-purchase policies in a macroeconomic model with banks, which face occasionally-binding balance-sheet constraints. It proves analytically that asset-purchase policies are effective in offsetting large financial disturbances, which impair banks' capital position. It warns, however, that the policy can remain ineffective after non-financial shocks and might offer no substitute for interest rate policy when the latter is constrained by the lower bound. Furthermore, the asset-purchase policy is addictive because it flattens the yield curve, reduces the profitability of the banking sector, and therefore slows down its recapitalization. Consequently, the optimal exit from large central bank balance sheets is gradual. (C) 2020 Elsevier B.V. All rights reserved.