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.
- Sprache
-
Englisch
- Erschienen in
-
Series: Working Paper ; No. 193 [rev.]
- Klassifikation
-
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
- Thema
-
monetary theory
over-the-counter markets
open market operations
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:
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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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