Negative Interest Rate Policy (NIRP) - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Negative Interest Rate Policy (NIRP) write by Andreas Jobst. This book was released on 2016-08-10. Negative Interest Rate Policy (NIRP) available in PDF, EPUB and Kindle. More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.
Negative Interest Rates
Negative Interest Rates - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Negative Interest Rates write by Luís Brandão Marques. This book was released on 2021-03-03. Negative Interest Rates available in PDF, EPUB and Kindle. This paper focuses on negative interest rate policies and covers a broad range of its effects, with a detailed discussion of findings in the academic literature and of broader country experiences.
Negative Interest Rates
Negative Interest Rates - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Negative Interest Rates write by Jacques Ninet. This book was released on 2020-11-26. Negative Interest Rates available in PDF, EPUB and Kindle. This volume of Critical Studies on Corporate Responsibility, Governance and Sustainability titled Negative Interest Rates: The Black Hole of Financial Capitalism is the English translation of and already published french book about Financial Capitalism. It explores the themes and the consequences of Negative interest and capitalism.
Bank Profitability and Risk-Taking
Bank Profitability and Risk-Taking - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bank Profitability and Risk-Taking write by Natalya Martynova. This book was released on 2015-11-25. Bank Profitability and Risk-Taking available in PDF, EPUB and Kindle. Traditional theory suggests that more profitable banks should have lower risk-taking incentives. Then why did many profitable banks choose to invest in untested financial instruments before the crisis, realizing significant losses? We attempt to reconcile theory and evidence. In our setup, banks are endowed with a fixed core business. They take risk by levering up to engage in risky ‘side activities’(such as market-based investments) alongside the core business. A more profitable core business allows a bank to borrow more and take side risks on a larger scale, offsetting lower incentives to take risk of given size. Consequently, more profitable banks may have higher risk-taking incentives. The framework is consistent with cross-sectional patterns of bank risk-taking in the run up to the recent financial crisis.
Enabling Deep Negative Rates to Fight Recessions: A Guide
Enabling Deep Negative Rates to Fight Recessions: A Guide - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Enabling Deep Negative Rates to Fight Recessions: A Guide write by Ruchir Agarwal. This book was released on 2019-04-29. Enabling Deep Negative Rates to Fight Recessions: A Guide available in PDF, EPUB and Kindle. The experience of the Great Recession and its aftermath revealed that a lower bound on interest rates can be a serious obstacle for fighting recessions. However, the zero lower bound is not a law of nature; it is a policy choice. The central message of this paper is that with readily available tools a central bank can enable deep negative rates whenever needed—thus maintaining the power of monetary policy in the future to end recessions within a short time. This paper demonstrates that a subset of these tools can have a big effect in enabling deep negative rates with administratively small actions on the part of the central bank. To that end, we (i) survey approaches to enable deep negative rates discussed in the literature and present new approaches; (ii) establish how a subset of these approaches allows enabling negative rates while remaining at a minimum distance from the current paper currency policy and minimizing the political costs; (iii) discuss why standard transmission mechanisms from interest rates to aggregate demand are likely to remain unchanged in deep negative rate territory; and (iv) present communication tools that central banks can use both now and in the event to facilitate broader political acceptance of negative interest rate policy at the onset of the next serious recession.
