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Forward guidance, quantitative easing, or both?
TL;DR: In this paper, the authors empirically evaluate two particular types of unconventional monetary policies (forward guidance and quantitative easing) in a structural manner, to mitigate concerns that empirical evaluation of either policy in isolation is prone to at leastpartially absorb the effects of the other - typically simultaneously implemented - policy.
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Abstract: During the Great Recession numerous central banks have implemented various unconventional monetary policy measures. This paper aims to empirically evaluate two particular types of unconventional policies (forward guidance and quantitative easing)in a structural manner. The primary aim is to evaluate the policies jointly, to mitigate concerns that empirical evaluation of either policy in isolation is prone to at leastpartially absorb the effects of the other - typically simultaneously implemented - policy. The approach is structural to overcome inherent empirical difficulties in evaluating policies, e.g. in the wake of anticipation. The model is estimated for the US (1975-2015) and sheds light on the historical real effects of the government debt maturity structure as well as the contribution of Fed policy through its maturity policy during the crisis.
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Understanding International Long-Term Interest Rate Comovement
TL;DR: In this article, an estimated DSGE model for the UK (vis-`a-vis the US) establishes three structural empirical results: (1) Comovement arises due to nominal fluctuations, not through real rates or term premia.
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Paul van Zeeland and the first decade of the US Federal Reserve System : The analysis from a European central banker who was a student of Kemmerer
Ivo Maes,Rebeca Gomez Betancourt +1 more
TL;DR: The first years of the US Federal Reserve System through the lens of Paul van Zeeland's PhD dissertation were studied in this paper, where the authors found that the Fed's independence from the State was important.
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Endogenous forward guidance
TL;DR: In this article, the authors propose a novel framework where forward guidance (FG) is endogenously determined, which assumes that a monetary authority solves an optimal policy problem under commitment at the zero-lower bound.
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Vítor Constâncio: Role and effects of the ECB non-standard policy measures
Vítor Constâncio
- 14 Sep 2017
TL;DR: The recent workshop on non-standard monetary policy measures at the European Central Bank (ECB) as discussed by the authors has been a regular part of our annual conference schedule here at the ECB for almost ten years now.
Country Comparison of Central Bank Policies - Quantitative Easing as a Useful Tool or Overrated Policy
TL;DR: In this paper , the effectiveness of quantitative easing in comparison with standard monetary policy methods was evaluated using time series and relative indices, regression and Arima analysis, and it was concluded that non-standard central bank measures do not explicitly have a significantly greater or better effect on the change in price level or on economic growth.
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Macroeconomic Effects of Federal Reserve Forward Guidance
Jeffrey R. Campbell,Charles L. Evans,Jonas D. M. Fisher,Alejandro Justiniano +3 more
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TL;DR: The authors empirically characterize the responses of asset prices and private macroeconomic forecasts to FOMC forward guidance, both before and since the recent financial crisis, and investigate how pairing such guidance with bright-line rules for launching rate increases can mitigate risks to the Federal Reserve's price stability mandate.
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Nominal Rigidities and the Dynamic Effects of a Shock to Monetary Policy
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