U.S. Fed: Why replacement of “operation twist” with outright bond purchases...

JP Morgan’s Nikolaos Panigirtzoglou presented a nice reasoning, why the December 12 2012 U.S. Fed decision to replace its maturity extension program with outright bond...

Updated summary: U.S. non-conventional monetary policy

The arrival of short-term interest rates at the zero bound has changed U.S. monetary policy irrevocably. The Fed's asset purchases have exceeded a quarter...

What we can learn from the “fiscal theory of inflation”

Fiscal policy is as important as monetary policy for inflation dynamics. Government debt has features similar to money and affects private wealth and prices....

Quantitative easing and the collateral problem

Another (IMF) paper of Manmohan Singh deals with the influence of non-conventional monetary policy on collateralized borrowing. In past years, quantitative easing (QE) has absorbed collateral...

An updated guide to ECB non-conventional monetary policy

The ECB now runs one of the most complex monetary policy regimes. Beyond regular liquidity supply, its operating framework features long-term full-allotment refinancing operations, generous collateral acceptance,...

A Fed view on low long-term yields

Federal Reserve Chairman Bernanke recently explained globally low long-term yields as a combination of anchored inflation expectations, negative real policy rates, and a compressed term...

The side-effects of non-conventional monetary policy

A BIS summary of research gives a nice overview on non-conventional monetary policies and their unintended systemic consequences. Current policies appear to yield diminishing returns in terms...

The impact of non-conventional monetary policy on banks

Non-conventional monetary policy seems to benefit banks' balance sheets. After all, it offers cheap refinancing and credit market support. However, an empirical analysis by...

How easy G3 monetary policy spills over into East Asia

A recent BIS paper illustrates the consequences of highly accommodative monetary policy in the G3 for East Asia. These include lower policy rates than...

The “de-anchoring” of inflation in the euro area

Two recent empirical studies highlight the risk that inflation expectations in the euro area are becoming de-anchored, similar to Japan. De-anchoring means that short-term price...

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