Cross-country macro evidence on the effectiveness of unconventional monetary policies in a low interest rate environment

Monday, March 27, 2017 - 3:30pm

Speaker(s): 
Jouchi Nakajima - Bank for International Settlements

Abstract: 

Have unconventional monetary policies (UMPs) become less effective in a low interest rate environment? Based on a time-varying parameter VAR approach, the paper examines effectiveness of UMPs through a bank lending channel for the United States, the United Kingdom, the euro area and Japan. As the nominal rates remain exceptionally low, the UMPs have been subject to diminishing “bang for the monetary policy buck” over time. However, we find evidence that an interest-rate pass-through to lending rate and a link between the lending rate and macroeconomy have not broken down in the low interest rate environment.

Seminars generally take place in 116 Old Chem Building on Fridays from 3:30 - 4:30 pm. For additional information contact: karen.whitesell@duke.edu or phone 919-684-8029. Sorry, but we do not have reprints available. Please feel free to contact the authors by email for follow-up information, articles, etc. Reception following seminar in 211 Old Chemistry

Old Chemistry 116

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