Idle liquidity, CBDC and banking
In: European economic review: EER, Band 164, S. 104700
ISSN: 1873-572X
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In: European economic review: EER, Band 164, S. 104700
ISSN: 1873-572X
SSRN
We discover a consumption channel of monetary policy in a model with money and government bonds. When the central bank withdraws government bonds (short-term or long-term) through open market operations, it lowers re- turns on bonds. The lower return has a direct negative impact on consumption by households that hold bonds, and an indirect negative impact on consumption by households that hold money. As a result, fi rms earn less pro fits from production, which leads to higher unemployment. The existence of such a consumption channel can help us understand the e¤ects of unconventional monetary policy.
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SSRN
In: Journal of economic dynamics & control, Band 89, S. 100-116
ISSN: 0165-1889
In: China economic review, Band 39, S. 15-30
ISSN: 1043-951X