Unconventional Monetary Policy and the Anchoring of Inflation Expectations

Ciccarelli, Matteo; García, Juan Ángel; Montes-Galdón, Carlos

doi:10.2139/ssrn.2910910

Cited by 4 publications

(3 citation statements)

References 14 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Moreover, it has become way more firmly anchored than in the past as the Fed and the ECB have more clearly committed to their inflation objectives. This view has been analyzed and expressed in a wide range of research, Fed and ECB communications, including among others, Roberts (2004), Bernanke (2007), Mishkin (2011), Kiley et al (2015), Yellen et al (2015), Pfajfar and Roberts (2018), Ng, Wessel and Sheiner (2018) for the US, and Draghi (2015), Natoli and Sigalotti (2017), Speck (2016), Dovern and Kenny (2017), Ciccarelli, Garcia and Montes-Galdón (2017) and Bobeica and Jarocinski (2017) for Europe.…”

Section: Introductionmentioning

confidence: 99%

Job Polarization and the Flattening of the Price Phillips Curve

Siena

Zago

2021

SSRN Journal

View full text Add to dashboard Cite

Section: Introductionmentioning

confidence: 99%

Job Polarization and the Flattening of the Price Phillips Curve

Siena

Zago

2021

SSRN Journal

View full text Add to dashboard Cite

“…The literature on QE has examined the policy's effect on a range of key economic variables such as long-term interest rates (see for exampleGagnon et al (2011),Christensen and Rudebusch (2012) andEser and Schwaab (2016)), asset prices(Joyce et al (2012)), macroeconomic aggregates such as GDP and inflation(Baumeister and Benati (2017) andGambetti and Musso (2017)) and market participant expectations(Christensen and Rudebusch (2012) andCiccarelli et al (2017).…”

mentioning

confidence: 99%

“…This is consistent with the model of 1. The literature on QE has examined the policy's effect on a range of key economic variables such as long-term interest rates (see, e.g., Gagnon et al 2011, Christensen and Rudebusch 2012, Eser and Schwaab 2016, asset prices (Joyce et al 2012), macro-economic aggregates such as GDP and inflation (Baumeister and Benati 2017, Gambetti and Musso 2017), and market participant expectations Rudebusch 2012, Ciccarelli, Garcia, andMontes-Galdon 2017). Christensen and Krogstrup (2016), which emphasizes the imperfect substitutability of reserves and bonds as assets in a bank's portfolio.…”

mentioning

confidence: 99%

A Model of QE, Reserve Demand, and the Money Multiplier

Ryan

Whelan

2022

J of Money Credit Banking

View full text Add to dashboard Cite

Quantitative easing programmes have driven unprecedented expansions in the supply of central bank reserves around the world over the past two decades, fundamentally changing the implementation of monetary policy. The collapse in money multipliers following QE episodes has often been interpreted as implying banks are happy to passively hold most of the reserves created by QE. This paper develops a simple micro-simulation model of the banking sector that adapts the traditional money multiplier model and allows for bank reserve demand to be inferred from monetary aggregates. The model allows the use of unwanted reserves by banks to play out over time alongside QE purchases and incorporates both significantly higher reserve demand after 2008 and capital constraints. With these additions, the model explains the persistently lower money multipliers seen in the US following QE, as well as the growth in commercial bank deposits. The model suggests the demand from banks for reserves has increased substantially since the introduction of QE but not to the point where banks are passively absorbing all newly created reserves.

show abstract

Job Polarisation, Labour Market Fluidity and the Flattening of the Phillips Curve

Siena,

Zago

2024

The Economic Journal

View full text Add to dashboard Cite

This paper shows that job polarisation –i.e., the disappearance of routine jobs– is changing the characteristics of the labour market. This has structural implications for the relationship between inflation and unemployment, the price Phillips Curve (PC). Using data from the European Monetary Union (EMU) and exploiting the fact that job polarisation accelerates during recessions, we obtain two empirical results. First, countries experiencing a bigger shift in the occupational structure during a downturn exhibit a flatter PC afterwards. Second, the occupational shifts experienced during the Great Recession and the Sovereign Debt Crisis explain more than a fourth of the flattening of the curve in the 2002-2018 period. Then, using a New Keynesian model with unemployment and search and matching frictions, we highlight a channel through which labour market characteristics operate on the slope of the PC. Increasing labour market fluidity –i.e., higher separation and hiring rate– decreases the slope of the PC. Using micro-data, we find that in the EMU non-routine jobs are more fluid. We conclude that job polarisation flattened the PC.

show abstract

Unconventional Monetary Policy and the Anchoring of Inflation Expectations

Cited by 4 publications

References 14 publications

Job Polarization and the Flattening of the Price Phillips Curve

Job Polarization and the Flattening of the Price Phillips Curve

A Model of QE, Reserve Demand, and the Money Multiplier

Job Polarisation, Labour Market Fluidity and the Flattening of the Phillips Curve

Contact Info

Product

Resources

About