What Problem Is Post-Crisis QE Trying to Solve?

نویسندگان

چکیده

What problem the Fed and other central banks are solving by printing money letting interest rates fall to zero is focus of this paper. This activity does not appear affect nominal GDP or inflation prior COVID, yet bank liabilities have continued rise. suggests presence rising cash demand that has prevented excess pressures from emerging. While there was some hope quantitative easing would be a new instrument in addition as far monetary policy goals were concerned, proved case. Instead, banking system for keeps an endogenous response changed business models forced on them post-crisis re-regulation extremely low rates. These ideas tested with cointegration error correction econometric techniques. Examples growing risk leverage counterparty risks disequilibrium process provided.

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ژورنال

عنوان ژورنال: Journal of risk and financial management

سال: 2022

ISSN: ['1911-8074', '1911-8066']

DOI: https://doi.org/10.3390/jrfm15020040