Enabling Deep Negative Rates To Fight Recessions A Guide

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Enabling Deep Negative Rates to Fight Recessions: A Guide

Ruchir Agarwal,Miles Kimball
Enabling Deep Negative Rates to Fight Recessions A Guide Book PDF

Author : Ruchir Agarwal,Miles Kimball
Publisher : International Monetary Fund
Page : 89 pages
File Size : 50,8 Mb
Release : 2019-04-29
Category : Business & Economics
ISBN : 9781498312462

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Enabling Deep Negative Rates to Fight Recessions: A Guide by Ruchir Agarwal,Miles Kimball Pdf

The experience of the Great Recession and its aftermath revealed that a lower bound on interest rates can be a serious obstacle for fighting recessions. However, the zero lower bound is not a law of nature; it is a policy choice. The central message of this paper is that with readily available tools a central bank can enable deep negative rates whenever needed—thus maintaining the power of monetary policy in the future to end recessions within a short time. This paper demonstrates that a subset of these tools can have a big effect in enabling deep negative rates with administratively small actions on the part of the central bank. To that end, we (i) survey approaches to enable deep negative rates discussed in the literature and present new approaches; (ii) establish how a subset of these approaches allows enabling negative rates while remaining at a minimum distance from the current paper currency policy and minimizing the political costs; (iii) discuss why standard transmission mechanisms from interest rates to aggregate demand are likely to remain unchanged in deep negative rate territory; and (iv) present communication tools that central banks can use both now and in the event to facilitate broader political acceptance of negative interest rate policy at the onset of the next serious recession.

Enabling Deep Negative Rates to Fight Recessions: A Guide

Ruchir Agarwal,Miles Kimball
Enabling Deep Negative Rates to Fight Recessions A Guide Book PDF

Author : Ruchir Agarwal,Miles Kimball
Publisher : International Monetary Fund
Page : 89 pages
File Size : 45,6 Mb
Release : 2019-04-29
Category : Business & Economics
ISBN : 9781484398777

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Enabling Deep Negative Rates to Fight Recessions: A Guide by Ruchir Agarwal,Miles Kimball Pdf

The experience of the Great Recession and its aftermath revealed that a lower bound on interest rates can be a serious obstacle for fighting recessions. However, the zero lower bound is not a law of nature; it is a policy choice. The central message of this paper is that with readily available tools a central bank can enable deep negative rates whenever needed—thus maintaining the power of monetary policy in the future to end recessions within a short time. This paper demonstrates that a subset of these tools can have a big effect in enabling deep negative rates with administratively small actions on the part of the central bank. To that end, we (i) survey approaches to enable deep negative rates discussed in the literature and present new approaches; (ii) establish how a subset of these approaches allows enabling negative rates while remaining at a minimum distance from the current paper currency policy and minimizing the political costs; (iii) discuss why standard transmission mechanisms from interest rates to aggregate demand are likely to remain unchanged in deep negative rate territory; and (iv) present communication tools that central banks can use both now and in the event to facilitate broader political acceptance of negative interest rate policy at the onset of the next serious recession.

The Handbook of Global Shadow Banking, Volume I

Luc Nijs
The Handbook of Global Shadow Banking Volume I Book PDF

Author : Luc Nijs
Publisher : Springer Nature
Page : 822 pages
File Size : 53,9 Mb
Release : 2020-06-30
Category : Business & Economics
ISBN : 9783030347437

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The Handbook of Global Shadow Banking, Volume I by Luc Nijs Pdf

This global handbook provides an up-to-date and comprehensive overview of shadow banking, or market-based finance as it has been recently coined. Engaging in financial intermediary services outside of normal regulatory parameters, the shadow banking sector was arguably a critical factor in causing the 2007-2009 financial crisis. This volume focuses specifically on shadow banking activities, risk, policy and regulatory issues. It evaluates the nexus between policy design and regulatory output around the world, paying attention to the concept of risk in all its dimensions—the legal, financial, market, economic and monetary perspectives. Particular attention is given to spillover risk, contagion risk and systemic risk and their positioning and relevance in shadow banking activities. Newly introduced and incoming policies are evaluated in detail, as well as how risk is managed, observed and assessed, and how new regulation can potentially create new sources of risk. Volume I concludes with analysis of what will and still needs to happen in the event of another crisis. Proposing innovative suggestions for improvement, including a novel Pigovian tax to tame financial and systemic risks, this handbook is a must-read for professionals and policy-makers within the banking sector, as well as those researching economics and finance.

The Incredible Upside-Down Fixed-Income Market: Negative Interest Rates and Their Implications

Vineer Bhansali
The Incredible Upside Down Fixed Income Market Negative Interest Rates and Their Implications Book PDF

Author : Vineer Bhansali
Publisher : CFA Institute Research Foundation
Page : 107 pages
File Size : 46,5 Mb
Release : 2021
Category : Business & Economics
ISBN : 9781952927195

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The Incredible Upside-Down Fixed-Income Market: Negative Interest Rates and Their Implications by Vineer Bhansali Pdf

In recorded financial history, there are almost no occasions, other than the present, where a significant portion of the global bond markets has been trading at negative nominal yields. Is this an anomaly or what will be the normal state of the financial markets in years to come? This monograph investigates the ongoing debate between the pros and cons of negative nominal yields and the economic rationale(s) that are used to justify or criticize underlying policies. Even in academic circles, few agree on the costs and benefits of negative yields. Surveying the global bond markets of the day, I find the impact of negative yields in almost all regions and sectors, though sovereign bond markets, which are closest to monetary policy, are the dominant category of bonds with negative yields. I next look at the participants in the negatively yielding bond market and at the motivations that justify their actions. The conclusion is that although different participants might have different reasons to buy negatively yielding bonds, their collective action is certainly responsible for creating a local equilibrium in which these markets clear. Central bank policy is the next focus in this monograph, and I discuss in depth the economic rationale as propounded by one such bank, the European Central Bank. I conclude with a discussion of the blurring lines between monetary and fiscal policy, which are likely to become centerpieces in future years as global sovereign debt levels rise. Next, I look at the influence of negative yields on other asset markets, such as equities, and especially derivatives markets, such as the demand for options. A discussion of potential risks then follows. The monograph concludes with a review of the impact of negative yields on nonfinancial aspects of society. Although the forecast is anything but crystal clear, the evolution of markets and economics in the years to come will undoubtedly be influenced by this massive economic experiment of negative yields.

Negative Interest Rates

Luís Brandão Marques,Marco Casiraghi,Gaston Gelos,Güneş Kamber,Roland Meeks
Negative Interest Rates Book PDF

Author : Luís Brandão Marques,Marco Casiraghi,Gaston Gelos,Güneş Kamber,Roland Meeks
Publisher : International Monetary Fund
Page : 84 pages
File Size : 54,9 Mb
Release : 2021-03-03
Category : Business & Economics
ISBN : 9781513570082

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Negative Interest Rates by Luís Brandão Marques,Marco Casiraghi,Gaston Gelos,Güneş Kamber,Roland Meeks Pdf

This paper focuses on negative interest rate policies and covers a broad range of its effects, with a detailed discussion of findings in the academic literature and of broader country experiences.

Debates in Monetary Macroeconomics

Steven Pressman,John Smithin
Debates in Monetary Macroeconomics Book PDF

Author : Steven Pressman,John Smithin
Publisher : Springer Nature
Page : 249 pages
File Size : 49,8 Mb
Release : 2022-11-30
Category : Business & Economics
ISBN : 9783031112409

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Debates in Monetary Macroeconomics by Steven Pressman,John Smithin Pdf

This edited volume presents the key unresolved debates in monetary macroeconomics, covering the five topics of budget, trade, taxes, exchange rates and monetary policy. For each topic, there are two authors — one arguing for a certain policy and one against. The book takes an approach eschewing mathematics or econometrics, instead presenting arguments in the spirit of political economy - while incorporating the most recent thinking in macroeconomics. This approach, combined with the objective of encouraging debate, makes the book ideal reading for students of monetary macroeconomics, researchers seeking alternative views, and the general public.

Sacred Economics, Revised

Charles Eisenstein
Sacred Economics Revised Book PDF

Author : Charles Eisenstein
Publisher : North Atlantic Books
Page : 520 pages
File Size : 43,6 Mb
Release : 2021-02-16
Category : Political Science
ISBN : 9781623175771

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Sacred Economics, Revised by Charles Eisenstein Pdf

Expanded and updated, Charles Eisenstein's classic treatise on capitalism, currency, and the gift economy. This revised version traces the history of money, from ancient gift economies to modern capitalism, and includes new material on cryptocurrencies and emerging research that has come out since the book's original publication. Charles Eisenstein shows how capitalism contributes to alienation, competition, and scarcity; destroys community; and necessitates endless growth at the cost of social and environmental devastation. Today, these trends have reached their extreme--and their collapse presents a golden opportunity to transition to a more connected, ecological, and sustainable way of being. Eisenstein describes the deeper narratives beneath our economic system, and how we can reimagine it to align with a new story. Applying a broadly integrated synthesis of theory, policy, and practice, he explores avant-garde concepts of the New Economics, including negative-interest currencies, local economies, gift economics, cryptocurrencies, and the restoration of the commons. Tapping into a rich lineage of conventional and unconventional economic thought, Eisenstein presents a vision that is original yet commonsense, radical yet gentle, and increasingly relevant as the crises of our civilization deepen.

Global Economic Prospects, January 2020

World Bank Group
Global Economic Prospects January 2020 Book PDF

Author : World Bank Group
Publisher : World Bank Publications
Page : 561 pages
File Size : 52,9 Mb
Release : 2020-01-27
Category : Business & Economics
ISBN : 9781464814693

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Global Economic Prospects, January 2020 by World Bank Group Pdf

Global growth is projected to be slightly faster in 2020 than the post-crisis low registered last year. While growth could be stronger if reduced trade tensions lead to a sustained reduction in uncertainty, the balance of risks to the outlook is to the downside. Growth in emerging market and developing economies is also expected to remain subdued, continuing a decade of disappointing outcomes. A steep and widespread productivity growth slowdown has been underway in these economies since the global financial crisis, despite the largest, fastest, and most broad-based accumulation of debt since the 1970s. In addition, many emerging market and developing economies, including low-income countries, face the challenge of phasing out price controls that impose heavy fiscal cost and dampen investment. These circumstances add urgency to the need to implement measures to rebuild macroeconomic policy space and to undertake reforms to rekindle productivity growth. These efforts need to be supplemented by policies to promote inclusive and sustainable long-term growth and accelerate poverty alleviation. Global Economic Prospects is a World Bank Group Flagship Report that examines global economic developments and prospects, with a special focus on emerging market and developing countries, on a semiannual basis (in January and June). The January edition includes in-depth analyses of topical policy challenges faced by these economies, whereas the June edition contains shorter analytical pieces.

A Primer on Macroeconomics (landscape view)

George A. Waters
A Primer on Macroeconomics landscape view Book PDF

Author : George A. Waters
Publisher : Illinois State University
Page : 224 pages
File Size : 46,9 Mb
Release : 2024-06-13
Category : Business & Economics
ISBN : 8210379456XXX

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A Primer on Macroeconomics (landscape view) by George A. Waters Pdf

This book bridges the gap between undergraduate textbooks using graphs, and graduate level texts that focus on a single theoretical framework. The text presents a range of models and connects them to current policy issues and empirical results. The field of macroeconomics has made great strides, but it is far from a finished product. See the website for more information: https://primeronmacro.blogspot.com/

Negative Interest Rates and Financial Stability

Karol Rogowicz,Małgorzata Iwanicz-Drozdowska
Negative Interest Rates and Financial Stability Book PDF

Author : Karol Rogowicz,Małgorzata Iwanicz-Drozdowska
Publisher : Taylor & Francis
Page : 259 pages
File Size : 53,6 Mb
Release : 2022-12-01
Category : Business & Economics
ISBN : 9781000787825

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Negative Interest Rates and Financial Stability by Karol Rogowicz,Małgorzata Iwanicz-Drozdowska Pdf

This book sheds new light on a recently introduced monetary tool – negative interest rates policy (NIRP). It provides in-depth insight into this phenomenon, conducted by the central banks in several economies, for example, the Eurozone, Switzerland and Japan, and its possible impact on systemic risk. Although it has been introduced as a temporary policy instrument, it may remain widely used for a longer period and by a greater range of central banks than initially expected, thus the book explores its effects and implications on the banking sector and financial markets, with a particular focus on potentially adverse consequences. There is a strong accent on the uniqueness of negative policy rates in the context of financial stability concerns. The authors assess whether NIRP has any – or in principle a stronger – impact on systemic risk than conventional monetary policy. The book is targeted at presenting and evaluating the initial experiences of NIRP policy during normal, i.e. pre-COVID, times, rather than in periods in which pre-established macroeconomic relations are rapidly disrupted or, specifically, when the source of the disruption is not purely economic in nature, unlike in systemic crisis. The authors adopt both theoretical and practical approaches to explore the key issues and outline the policy implications for both monetary and macroprudential authorities, with respect to negative interest rate policy, thus the book will provide a useful guide for policymakers, academics, advanced students and researchers of financial economics and international finance.

Designing Central Bank Digital Currencies

Mr.Itai Agur,Mr.Anil Ari,Mr.Giovanni Dell'Ariccia
Designing Central Bank Digital Currencies Book PDF

Author : Mr.Itai Agur,Mr.Anil Ari,Mr.Giovanni Dell'Ariccia
Publisher : International Monetary Fund
Page : 38 pages
File Size : 55,9 Mb
Release : 2019-11-18
Category : Business & Economics
ISBN : 9781513519883

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Designing Central Bank Digital Currencies by Mr.Itai Agur,Mr.Anil Ari,Mr.Giovanni Dell'Ariccia Pdf

We study the optimal design of a central bank digital currency (CBDC) in an environment where agents sort into cash, CBDC and bank deposits according to their preferences over anonymity and security; and where network effects make the convenience of payment instruments dependent on the number of their users. CBDC can be designed with attributes similar to cash or deposits, and can be interest-bearing: a CBDC that closely competes with deposits depresses bank credit and output, while a cash-like CBDC may lead to the disappearance of cash. Then, the optimal CBDC design trades off bank intermediation against the social value of maintaining diverse payment instruments. When network effects matter, an interest-bearing CBDC alleviates the central bank's tradeoff.

OECD Economic Surveys: Switzerland 2019

OECD
OECD Economic Surveys Switzerland 2019 Book PDF

Author : OECD
Publisher : OECD Publishing
Page : 116 pages
File Size : 49,5 Mb
Release : 2019-11-04
Category : Electronic
ISBN : 9789264748071

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OECD Economic Surveys: Switzerland 2019 by OECD Pdf

Swiss citizens continue to enjoy high living standards on a range of dimensions. Economic growth has slowed but the healthy labour market is still supporting incomes and consumption. However, risks to the outlook are building. Monetary policy has been very accommodative but low interest rates are adding to financial risks. Fiscal policy is sound and debt low. There is scope to make greater use of available fiscal space. Adapting to population ageing is becoming pressing. This trend, along with digital transformation, will bring new opportunities for the economy and society, but challenges as well. Policies have not kept up with rising life expectancy, particularly the statutory retirement age. Updating the pension system and lowering barriers to working longer would ensure that workers continue to receive adequate incomes during retirement.

The Federal Reserve System Purposes and Functions

Board of Governors of the Federal Reserve System
The Federal Reserve System Purposes and Functions Book PDF

Author : Board of Governors of the Federal Reserve System
Publisher : Unknown
Page : 0 pages
File Size : 42,5 Mb
Release : 2002
Category : Banks and Banking
ISBN : 0894991965

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The Federal Reserve System Purposes and Functions by Board of Governors of the Federal Reserve System Pdf

Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.

The Financial Crisis Inquiry Report

Financial Crisis Inquiry Commission
The Financial Crisis Inquiry Report Book PDF

Author : Financial Crisis Inquiry Commission
Publisher : Cosimo, Inc.
Page : 692 pages
File Size : 49,7 Mb
Release : 2011-05-01
Category : Political Science
ISBN : 9781616405410

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The Financial Crisis Inquiry Report by Financial Crisis Inquiry Commission Pdf

The Financial Crisis Inquiry Report, published by the U.S. Government and the Financial Crisis Inquiry Commission in early 2011, is the official government report on the United States financial collapse and the review of major financial institutions that bankrupted and failed, or would have without help from the government. The commission and the report were implemented after Congress passed an act in 2009 to review and prevent fraudulent activity. The report details, among other things, the periods before, during, and after the crisis, what led up to it, and analyses of subprime mortgage lending, credit expansion and banking policies, the collapse of companies like Fannie Mae and Freddie Mac, and the federal bailouts of Lehman and AIG. It also discusses the aftermath of the fallout and our current state. This report should be of interest to anyone concerned about the financial situation in the U.S. and around the world.THE FINANCIAL CRISIS INQUIRY COMMISSION is an independent, bi-partisan, government-appointed panel of 10 people that was created to "examine the causes, domestic and global, of the current financial and economic crisis in the United States." It was established as part of the Fraud Enforcement and Recovery Act of 2009. The commission consisted of private citizens with expertise in economics and finance, banking, housing, market regulation, and consumer protection. They examined and reported on "the collapse of major financial institutions that failed or would have failed if not for exceptional assistance from the government."News Dissector DANNY SCHECHTER is a journalist, blogger and filmmaker. He has been reporting on economic crises since the 1980's when he was with ABC News. His film In Debt We Trust warned of the economic meltdown in 2006. He has since written three books on the subject including Plunder: Investigating Our Economic Calamity (Cosimo Books, 2008), and The Crime Of Our Time: Why Wall Street Is Not Too Big to Jail (Disinfo Books, 2011), a companion to his latest film Plunder The Crime Of Our Time. He can be reached online at www.newsdissector.com.

Global Waves of Debt

M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara
Global Waves of Debt Book PDF

Author : M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara
Publisher : World Bank Publications
Page : 403 pages
File Size : 45,5 Mb
Release : 2021-03-03
Category : Business & Economics
ISBN : 9781464815454

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Global Waves of Debt by M. Ayhan Kose,Peter Nagle,Franziska Ohnsorge,Naotaka Sugawara Pdf

The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.