Unconventional Monetary Policies: An Appraisal

Borio, Claudio; Disyatat, Piti

doi:10.1111/j.1467-9957.2010.02199.x

Cited by 164 publications

(46 citation statements)

References 53 publications

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“…There is no direct link between monetary policy and the level of reserves, and no causal relationship from reserves to bank lending. This decoupling of interest rates from reserves is discussed in detail in Borio and Disyatat (2009) and Disyatat (2008).…”

Section: The Role Of Banks In the Transmission Mechanismmentioning

confidence: 99%

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The Bank Lending Channel Revisited

Disyatat

2011

Journal of Money, Credit and Banking

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218

104

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A central proposition in research on the role of banks in the transmission mechanism is that monetary policy imparts a direct impact on deposits and that deposits act as the driving force of bank lending. This paper argues that the emphasis on policy-induced changes in deposits is misplaced. A reformulation of the bank lending channel is proposed that works primarily through the impact of monetary policy on banks' balance sheet strength and risk perception. Such a recasting implies, contrary to conventional wisdom, that greater reliance on market-based funding enhances the importance of the channel.JEL codes: E40, E44, E51, E52, E58

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Section: The Role Of Banks In the Transmission Mechanismmentioning

confidence: 99%

“…1 1 As explained in detail in Borio and Disyatat (2009), this can only happen when the opportunity cost of reserves has been eliminated either because interest rates are at the zero floor or reserves are remunerated at the policy interest rate. …”

mentioning

confidence: 99%

The Bank Lending Channel Revisited

Disyatat

2011

Journal of Money, Credit and Banking

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218

104

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“…The first one was quantitative easing. QE is expressed as an increase in the size of the central bank balance sheet through an increase in its monetary liabilities (Borio & Disyatat, 2010;Ricketts, 2011). The second form was called "qualitative" or "credit" easing and focused on altering the composition of the central bank"s balance sheet (Kawai & Takagi, 2012;Tuckwell & Mendonç a, 2016).…”

Section: Importance Of Non-conventional Policies and Helicopter Moneymentioning

confidence: 99%

Helicopter Money: The New Form of Monetary Easing in the Eurozone?

Kyriazis¹,

Economou²

2017

IJEF

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Although unconventional measures by the ECB have been very extensive so as to fortify the Eurozone"s financial system the question of whether more drastic measures are necessary, is at the forefront of newly aroused academic debate. This paper"s main effort is to conceptualize helicopter drops in the Eurozone before hindsight in order to shed some light on how feasible are more drastic measures for the Eurozone and how they could further attenuate moral hazard problems. An early understanding of overt money financing will help in better driving monetary policy and emphasize whether the benefits of more and free money printing could bring about a heal for the wreckages of the EU membership status.

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“…This has raised concerns about inducing distortions in financial markets (e.g. Borio and Disyatat, ). Similarly, at the macro‐economic level, there are concerns that low policy interest rates and further stimulus through UMP have amplified both domestic and international spillover effects (e.g.…”

Section: Introductionmentioning

confidence: 99%

A Survey of the International Evidence and Lessons Learned About Unconventional Monetary Policies: Is a ‘New Normal’ in Our Future?

Lombardi¹,

Siklos

Amand

2018

Journal of Economic Surveys

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This study examines the effectiveness of unconventional monetary policies (UMP). It considers whether these policies have been successful and where their effects remain uncertain. We survey both the domestic financial market and macro‐economic effects of UMP in the economies where these policies were introduced and their international spillover effects. The paper considers the impact of a wide range of UMP rather than the effects of specific policy instruments. We also provide a retrospective on the important case of Japan beginning in the late1990s and ask whether the Eurozone's experience with UMP is substantively different given its structure of policymaking. Finally, we ask: if the ‘old normal’ is not in our future, should the ‘new normal’ in monetary policy routinely include what we now refer to as UMP? We conclude that UMP can prevent economic collapse but are not designed to promote stronger long‐term economic growth. Apart from new communication strategies, the use of UMP under normal circumstances does not appear to be a sound monetary policy strategy. Failure to learn this lesson might also enable future policy makers to ask or expect too much from their central banks.

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Unconventional Monetary Policies: An Appraisal

Cited by 164 publications

References 53 publications

The Bank Lending Channel Revisited

The Bank Lending Channel Revisited

Helicopter Money: The New Form of Monetary Easing in the Eurozone?

A Survey of the International Evidence and Lessons Learned About Unconventional Monetary Policies: Is a ‘New Normal’ in Our Future?

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