A simple general equilibrium model of large excess reserves

• 成果类型: Article
• 署名作者: Ennis, Huberto M.
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Richmond
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.04.008
• 发表日期: 2018
• 页码: 50-65
• 关键词: Banking; monetary policy; Central bank

摘要

In a general equilibrium macroeconomic model with a banking system that can hold large excess reserves and is subject to (possibly binding) capital constraints, I study how the quantity of government-provided monetary assets is related to the price level in steady state. When the central bank does not pay interest on reserves, the price level moves one for-one with the monetary base. If, instead, the central bank can pay interest on reserves at market rates, the price level can decouple from the quantity of monetary assets in the economy: a larger monetary base need not imply a higher price level. However, for large enough levels of reserves, the capital constraint binds and the tight link between money and prices reemerges. (C) 2018 Elsevier B.V. All rights reserved.