Safe Assets, Liquidity, and Monetary Policy

• 成果类型: Article
• 署名作者: Benigno, Pierpaolo; Nistico, Salvatore
• 署名单位: Luiss Guido Carli University; Sapienza University Rome
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MACROECONOMICS
• ISSN/ISSBN: 1945-7707
• DOI: 10.1257/mac.20150073
• 发表日期: 2017
• 页码: 182-227
• 关键词: interest-rates; money; prices

摘要

This paper studies monetary policy in models where multiple assets have different liquidity properties: safe and pseudo-safe assets coexist. A shock worsening the liquidity properties of the pseudo-safe assets raises interest rate spreads and can cause a deep recession-cum-deflation. Expanding the central bank's balance sheet fills the shortage of safe assets and counteracts the recession. Lowering the interest rate on reserves insulates market interest rates from the liquidity shock and improves risk sharing between borrowers and savers.