A MONETARY ANALYSIS OF BALANCE SHEET POLICIES

• 成果类型: Article
• 署名作者: Hoermann, Markus; Schabert, Andreas
• 署名单位: University of Cologne
• 刊物名称: ECONOMIC JOURNAL
• ISSN/ISSBN: 0013-0133
• DOI: 10.1111/ecoj.12167
• 发表日期: 2015
• 页码: 1888-1917
• 关键词: interest-rates; RISK

摘要

We augment a standard macroeconomic model to analyse the effects and limitations of balance sheet policies. We show that the central bank can stimulate real activity by changing the size or the composition of its balance sheet, when interest rate policy is ineffective. Specifically, the central bank can stabilise the economy by increasing money supply against eligible assets even when the policy rate is at the zero lower bound. By changing the composition of its balance sheet, it can affect interest rates and, for example, neutralise increases in firms' borrowing costs, which is not possible under a single instrument regime. We further analyse the limitations of balance sheet policies and show that they are particularly useful under liquidity demand shocks.