INSIDE MONEY, INVESTMENT, AND UNCONVENTIONAL MONETARY POLICY*

• 成果类型: Article
• 署名作者: Altermatt, Lukas
• 署名单位: University of Essex
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12588
• 发表日期: 2022
• 页码: 1527-1560
• 关键词: liquidity; credit; MODEL; debt

摘要

I develop a model where banks play a central role in monetary policy transmission. By credibly committing to repayment, banks can perform liquidity transformation. Illiquid assets may pay a liquidity premium because they allow banks to create liquid assets. The policy analysis discusses how the monetary authority can affect nominal rates and inflation when the fiscal authority follows nominal or real debt targets. A main result is that under a nominal debt target, the monetary authority is only able to increase inflation at the zero-lower bound by issuing money via lump-sum transfers, while doing so via bond purchases is ineffective.