Advancing the Monetary Policy Toolkit through Outright Transfers / Sascha Buetzer.

Format:

Book

Government document

Author/Creator:

Buetzer, Sascha.

Series:

IMF Working Papers; Working Paper ; No. 2022/087

IMF Working Papers

Language:

English

Physical Description:

1 online resource (61 pages)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2022.

Summary:

This paper argues that in reserve currency issuing economies at the effective lower bound, outright transfers from the central bank to households are both more equitable and more effective in achieving monetary policy objectives than asset purchases or negative interest rates. It shows that concerns pertaining to central banks’ policy solvency and equity position can be addressed through a careful assessment of a central bank's loss absorbing capacity and, if need be, tiered reserve remuneration policies. It also spells out key differences to a debt or money financed fiscal stimulus, which are particularly pronounced in a currency union without a central fiscal capacity. The paper concludes by discussing broader institutional, political, and legal considerations.

Contents:

Intro

Contents

I. Introduction

II. A Brief Guide Monetary Analysis in the ECB's Strategy and Its Evolution Since 1998

III. Survey of the Theoretical Debate

IV. The Importance of Money for Inflation Forecasts

V. Disaggregated Monetary Analysis

VI. How Time Path Dependent Should the ECB's Monetary Strategy Be?

VII. Conclusions.

Notes:

Description based on print version record.

ISBN:

9798400211102

9798400209949