scholarly journals Excess reserves, monetary policy and financial volatility

2017 ◽  
Vol 74 ◽  
pp. 153-168 ◽  
Author(s):  
Keyra Primus
Keyword(s):  
Monetary Policy ◽  
Financial Volatility ◽  
Excess Reserves

Prices may rise if lending picks up in major economies

2020 ◽  
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Crisis Response ◽  
Stock Market Volatility ◽  
Monetary Aggregate ◽  
Content Type ◽  
Excess Reserves ◽  
Central Bank Money ◽  
Pass Through ◽  
Bank Money

Significance Similar fears accompanied the 2008-09 anti-crisis response, but did not come true. The main reason is that, while quantitative easing and other measures boost the monetary base (M0), inflation is more likely to be fired by strong growth in the broadest monetary aggregate (M3); so far, there has been limited pass-through from M0 to M3. Impacts Central bank money supply is underwriting stock market gains, an intended monetary policy outcome; but stock market volatility is rising. If higher inflation does occur, central banks have the tools to control it; indeed, rising prices has been a central monetary policy goal. If inflationary pressures do appear, reducing the large volumes of banks’ excess reserves will require adroit management.

scholarly journals Excess reserves and monetary policy implementation

2017 ◽  
Vol 23 ◽  
pp. 212-235 ◽  
Author(s):  
Roc Armenter ◽  
Benjamin Lester
Keyword(s):  
Monetary Policy ◽  
Policy Implementation ◽  
Excess Reserves

UNCONVENTIONAL MONETARY POLICY AND A MODERN VIEW ON CASH ISSUES

2020 ◽  
Vol 5 (10) ◽  
pp. 15-21
Author(s):  
Ch. A. GOGICHAEV ◽  
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Money Supply ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Central Banks ◽  
Unconventional Monetary Policy ◽  
Abnormal Growth ◽  
Excess Reserves ◽  
Close Relationship

In the aftermath of the 2008 global financial crisis, central banks in developed countries began to resort to unconventional monetary policy measures as interest rates approached zero. Such actions have led to the expansion of the balance sheets of central banks due to the abnormal growth of excess reserves. The article discusses the misconception that such an increase in the monetary base can directly affect the volume of money supply through the action of the money multiplier mechanism and the narrow credit channel of the transmission mechanism. The opinion disputed that non-traditional measures of monetary policy, pro-vided they are adequate, lead to an increase in inflationary risks in the economy. The work focuses on the lack of a close relationship between reserves, the level of lending and the money supply, and attempts made to assess the boundaries of the monetary policy methods under consideration.

scholarly journals Excess reserves and the implementation of monetary policy of the ECB

2006 ◽  
Vol 28 (5) ◽  
pp. 491-510 ◽  
Author(s):  
Ulrich Bindseil ◽  
Gonzalo Camba-Mendez ◽  
Astrid Hirsch ◽  
Benedict Weller
Keyword(s):  
Monetary Policy ◽  
Excess Reserves ◽  
Implementation Of Monetary Policy

scholarly journals Excess Reserves and the Implementation of Monetary Policy of the ECB

2004 ◽  
Author(s):  
Ulrich Bindseil ◽  
Gonzalo Camba-Mendez ◽  
Astrid Hirsch ◽  
Benedict Weller
Keyword(s):  
Monetary Policy ◽  
Excess Reserves ◽  
Implementation Of Monetary Policy

scholarly journals Liquidity Ratios as Monetary Policy Tools

2019 ◽  
Vol 19 (175) ◽  
Author(s):  
Eric Monnet ◽  
Miklos Vari
Keyword(s):  
Monetary Policy ◽  
Central Banks ◽  
Historical Documents ◽  
Policy Tools ◽  
Coverage Ratio ◽  
Excess Reserves ◽  
Central Bankers

This paper explores what history can tell us about the interactions between macroprudential and monetary policy. Based on numerous historical documents, we show that liquidity ratios similar to the Liquidity Coverage Ratio (LCR) were commonly used as monetary policy tools by central banks between the 1930s and 1980s. We build a model that rationalizes the mechanisms described by contemporary central bankers, in which an increase in the liquidity ratio has contractionary effects, because it reduces the quantity of assets banks can pledge as collateral. This effect, akin to quantity rationing, is more pronounced when excess reserves are scarce.

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