Arbeitspapier
Central bank purchases of government bonds
We develop a dynamic general equilibrium model to analyze the effects of central bank purchases of government bonds by investigating the following three questions: Under what conditions are these purchases socially desirable, what incentive problems do they mitigate, and how large are these effects? We show that by purchasing government bonds, central banks induce agents to increase their demand for money, which increases the value of money and thereby improves the allocation and welfare. We then analyze the post-crisis period and show that implementing the zero lower bound was optimal and worth 0:014 percent of total consumption.
- Language
-
Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 193 [rev.]
- Classification
-
Wirtschaft
Incomplete Markets
Externalities
Price Level; Inflation; Deflation
Money and Interest Rates: General
Monetary Policy, Central Banking, and the Supply of Money and Credit: General
Portfolio Choice; Investment Decisions
Asset Pricing; Trading Volume; Bond Interest Rates
Financial Institutions and Services: Government Policy and Regulation
- Subject
-
monetary theory
over-the-counter markets
open market operations
money demand
pecuniary externality
- Event
-
Geistige Schöpfung
- (who)
-
Huber, Samuel
Kim, Jaehong
- Event
-
Veröffentlichung
- (who)
-
University of Zurich, Department of Economics
- (where)
-
Zurich
- (when)
-
2015
- Handle
- Last update
-
10.03.2025, 11:42 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
- Huber, Samuel
- Kim, Jaehong
- University of Zurich, Department of Economics
Time of origin
- 2015
Other Objects (12)
Central bank purchases of government bonds
Central bank asset purchases: Insights from quantitative easing auctions of government bonds
The effects of government bond purchases on leverage constraints of banks and non-financial firms
Home bias in bank sovereign bond purchases and the bank-sovereign nexus
Do government purchases affect unemployment?
Do government purchases affect unemployment?
The interest rate effects of government bond purchases away from the lower bound
How Do Economic Experts Assess the Effects of Large-scale Government Bond Purchases by Central Banks in the Short to Medium Term?
The optimal conduct of central bank asset purchases
The optimal conduct of central bank asset purchases
ECB bond purchases and quasi-fiscal activities
Flow effects of central bank asset purchases on euro area sovereign bond yields: Evidence from a natural experiment
Central bank purchases of government bonds
Central bank asset purchases: Insights from quantitative easing auctions of government bonds
The effects of government bond purchases on leverage constraints of banks and non-financial firms
Home bias in bank sovereign bond purchases and the bank-sovereign nexus
Do government purchases affect unemployment?
Do government purchases affect unemployment?
The interest rate effects of government bond purchases away from the lower bound
How Do Economic Experts Assess the Effects of Large-scale Government Bond Purchases by Central Banks in the Short to Medium Term?
The optimal conduct of central bank asset purchases
The optimal conduct of central bank asset purchases
ECB bond purchases and quasi-fiscal activities
Flow effects of central bank asset purchases on euro area sovereign bond yields: Evidence from a natural experiment
Central bank purchases of government bonds
Central bank asset purchases: Insights from quantitative easing auctions of government bonds
The effects of government bond purchases on leverage constraints of banks and non-financial firms
Home bias in bank sovereign bond purchases and the bank-sovereign nexus
Do government purchases affect unemployment?
Do government purchases affect unemployment?
The interest rate effects of government bond purchases away from the lower bound
How Do Economic Experts Assess the Effects of Large-scale Government Bond Purchases by Central Banks in the Short to Medium Term?
The optimal conduct of central bank asset purchases
The optimal conduct of central bank asset purchases
ECB bond purchases and quasi-fiscal activities