Arbeitspapier
Central bank purchases of government bonds
We develop a microfounded model, where agents have the possibility to trade money for government bonds in an over-the-counter market. It allows us to address important open questions about the effects of central bank purchases of government bonds, these being: under what conditions these purchases can be welfare-improving, what incentive problems they mitigate, and how large these effects are. Our main finding is that this policy measure can be welfare-improving, by correcting a pecuniary externality. Concretely, the value of money is increased as central bank's purchases of government bonds induce agents to increase their demand for money, which is welfare-improving.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 193
- Klassifikation
-
Wirtschaft
Price Level; Inflation; Deflation
Money and Interest Rates: General
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Asset Pricing; Trading Volume; Bond Interest Rates
- Thema
-
Monetary theory
over-the-counter markets
quantitative easing
money demand
pecuniary externality
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Huber, Samuel
Kim, Jaehong
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Zurich, Department of Economics
- (wo)
-
Zurich
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Huber, Samuel
- Kim, Jaehong
- University of Zurich, Department of Economics
Entstanden
- 2015
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