Exit strategies for monetary policy

• 成果类型: Article
• 署名作者: Berentsen, Aleksander; Kraenzlin, Sebastien; Mueller, Benjamin
• 署名单位: University of Basel; Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Swiss National Bank (SNB)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.05.002
• 发表日期: 2018
• 页码: 20-40
• 关键词: Exit strategies; Money market; Repo; monetary policy; Interest rates

摘要

In response to the financial crisis of 2007/08, all major central banks decreased interest rates to historically low levels and created large excess reserves. Central bankers and academics currently discuss how to implement monetary policy, going forward. We find that paying interest on reserves (IOR) is optimal if the central bank has full fiscal support. If the central bank has no fiscal support, reducing reserves is optimal. This can be achieved by reserve-absorbing operations, which hold the size of the balance sheet constant, or by selling assets, which reduces the size of the balance sheet. (C) 2018 Elsevier B.V. All rights reserved.