Low for Long and Risk-Taking /

The COVID-19 pandemic is causing an unprecedented worldwide economic contraction, leading central banks to reduce interest rates to historically low levels and making unconventional monetary policies-including 'low for long' interest rates and asset purchases-increasingly common. Arguably,...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Adrian, Tobias
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2020.
Schriftenreihe:Departmental Papers; Departmental Paper ; No. 2020/015
Schlagworte:
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:The COVID-19 pandemic is causing an unprecedented worldwide economic contraction, leading central banks to reduce interest rates to historically low levels and making unconventional monetary policies-including 'low for long' interest rates and asset purchases-increasingly common. Arguably, however, the policies implemented are efficient because they encourage increased risk-taking, and they may have, if unintentionally, increase medium- and long-run macro-financial vulnerabilities. This paper argues that the resulting trade-offs need to be carefully accounted for in monetary policy models and outlines how that can be achieved in practice.
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Beschreibung:1 online resource (37 pages)
Format:Mode of access: Internet
ISSN:2616-5333
Zugangseinschränkungen:Electronic access restricted to authorized BRAC University faculty, staff and students