Arbeitspapier
Monetary-fiscal interaction and quantitative easing
This paper analyzes the monetary-fiscal interaction if the central bank conducts quantitative easing. Although asset purchases have similar effects on the real economy under monetary and fiscal dominance, wealth effects yield a qualitatively different response on the rate of inflation. Our results show that under fiscal dominance, unconventional monetary policy has similar effects to conventional monetary policy on inflation because these wealth effects exert downward pressure on prices. The longer the average maturity, the more volatile is the transmission of quantitative easing to the real economy.
- ISBN
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978-3-95729-529-3
- Language
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Englisch
- Bibliographic citation
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Series: Bundesbank Discussion Paper ; No. 50/2018
- Classification
-
Wirtschaft
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
Fiscal Policy
- Subject
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Monetary Policy
Fiscal Policy
Asset Purchase Program
- Event
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Geistige Schöpfung
- (who)
-
Hollmayr, Josef
Kühl, Michael
- Event
-
Veröffentlichung
- (who)
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Deutsche Bundesbank
- (where)
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Frankfurt a. M.
- (when)
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2018
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Hollmayr, Josef
- Kühl, Michael
- Deutsche Bundesbank
Time of origin
- 2018
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