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Effects of Unconventional Monetary Policy on Financial Institutions

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Release : 2014
Genre : Economics
Kind : eBook
Book Rating : /5 ( reviews)

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Book Synopsis Effects of Unconventional Monetary Policy on Financial Institutions by : Gabriel Chodorow-Reich

Download or read book Effects of Unconventional Monetary Policy on Financial Institutions written by Gabriel Chodorow-Reich. This book was released on 2014. Available in PDF, EPUB and Kindle. Book excerpt: Monetary policy affects the real economy in part through its effects on financial institutions. High frequency event studies show the introduction of unconventional monetary policy in the winter of 2008-09 had a strong, beneficial impact on banks and especially on life insurance companies. I interpret the positive effects on life insurers as expansionary policy recapitalizing the sector by raising the value of legacy assets. Expansionary policy had small positive or neutral effects on banks and life insurers through 2013. The interaction of low nominal interest rates and administrative costs forced money market funds to waive fees, producing a possible incentive to reach for yield to reduce waivers. I show money market funds with higher costs reached for higher returns in 2009-11, but not thereafter. Some private defined benefit pension funds increased their risk taking beginning in 2009, but again such behavior largely dissipated by 2012. In sum, unconventional monetary policy helped to stabilize some sectors and provoked modest additional risk taking in others. I do not find evidence that the financial institutions studied formented a tradeoff between expansionary policy and financial stability at the end of 2013.

Macroeconomic Shocks and Unconventional Monetary Policy

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Release : 2019
Genre : Business & Economics
Kind : eBook
Book Rating : 107/5 ( reviews)

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Book Synopsis Macroeconomic Shocks and Unconventional Monetary Policy by : Naoyuki Yoshino

Download or read book Macroeconomic Shocks and Unconventional Monetary Policy written by Naoyuki Yoshino. This book was released on 2019. Available in PDF, EPUB and Kindle. Book excerpt: Barely two decades after the Asian financial crisis Asia was suddenly confronted with multiple challenges originating outside the region: the 2008 global financial crisis, the European debt crisis, and finally developed economies' implementation of unconventional monetary policies. The implementation of quantitative easing, ultra-low interest rate policies, and negative interest rate policies by a number of large central banks has given rise to concerns over financial stability and international capital flows. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets explains how shocks stemming from the global financial crisis have affected macroeconomic and financial stability in emerging Asia. Macroeconomic Shocks and Unconventional Monetary Policy: Impacts on Emerging Markets brings together the most up-to-date knowledge impacts of recent macroeconomic shocks on Asia's real economy; the spillover effects of macroeconomic shocks on financial markets and flows in Asia; and key challenges for monetary, exchange rate, trade and macro prudential policies of developing Asian economies. It is authored by experts in the field of international macroeconomics from leading academic institutions, central banks, and international organizations including the International Monetary Fund, the Bank for International Settlement, and the Asian Development Bank Institute.

The Effects of Unconventional Monetary Policies on Bank Soundness

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Release : 2014-08-13
Genre : Business & Economics
Kind : eBook
Book Rating : 563/5 ( reviews)

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Book Synopsis The Effects of Unconventional Monetary Policies on Bank Soundness by : Frederic Lambert

Download or read book The Effects of Unconventional Monetary Policies on Bank Soundness written by Frederic Lambert. This book was released on 2014-08-13. Available in PDF, EPUB and Kindle. Book excerpt: Unconventional monetary policy is often assumed to benefit banks. However, we find little supporting evidence. Rather, we find some evidence for heightened medium-term risks. First, in an event study using a novel instrument for monetary policy surprises, we do not detect clear effects of monetary easing on bank stock valuation but find a deterioration of medium-term bank credit risk in the United States, the euro area, and the United Kingdom. Second, in panel regressions using U.S. banks’ balance sheet information, we show that bank profitability and risk taking are ambiguously affected, while balance sheet repair is delayed.

Man Out

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Release : 2018-09-11
Genre : Political Science
Kind : eBook
Book Rating : 759/5 ( reviews)

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Book Synopsis Man Out by : Andrew L. Yarrow

Download or read book Man Out written by Andrew L. Yarrow. This book was released on 2018-09-11. Available in PDF, EPUB and Kindle. Book excerpt: The story of men who are hurting—and hurting America by their absence Man Out describes the millions of men on the sidelines of life in the United States. Many of them have been pushed out of the mainstream because of an economy and society where the odds are stacked against them; others have chosen to be on the outskirts of twenty-first-century America. These men are disconnected from work, personal relationships, family and children, and civic and community life. They may be angry at government, employers, women, and "the system" in general—and millions of them have done time in prison and have cast aside many social norms. Sadly, too many of these men are unsure what it means to be a man in contemporary society. Wives or partners reject them; children are estranged from them; and family, friends, and neighbors are embarrassed by them. Many have disappeared into a netherworld of drugs, alcohol, poor health, loneliness, misogyny, economic insecurity, online gaming, pornography, other off-the-grid corners of the internet, and a fantasy world of starting their own business or even writing the Great American novel. Most of the men described in this book are poorly educated, with low incomes and often with very few prospects for rewarding employment. They are also disproportionately found among millennials, those over 50, and African American men. Increasingly, however, these lost men are discovered even in tony suburbs and throughout the nation. It is a myth that men on the outer corners of society are only lower-middle-class white men dislocated by technology and globalization. Unlike those who primarily blame an unjust economy, government policies, or a culture sanctioning "laziness," Man Out explores the complex interplay between economics and culture. It rejects the politically charged dichotomy of seeing such men as either victims or culprits. These men are hurting, and in turn they are hurting families and hurting America. It is essential to address their problems. Man Out draws on a wide range of data and existing research as well as interviews with several hundred men, women, and a wide variety of economists and other social scientists, social service providers and physicians, and with employers, through a national online survey and in-depth fieldwork in several communities.

The Impact of Unconventional Monetary Policy on Financial Markets, Credit Markets and Financial Stability

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Release : 2017
Genre : Economic stabilization
Kind : eBook
Book Rating : 351/5 ( reviews)

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Book Synopsis The Impact of Unconventional Monetary Policy on Financial Markets, Credit Markets and Financial Stability by : Genèvre Covindassamy

Download or read book The Impact of Unconventional Monetary Policy on Financial Markets, Credit Markets and Financial Stability written by Genèvre Covindassamy. This book was released on 2017. Available in PDF, EPUB and Kindle. Book excerpt: In response to the 2008 financial crisis, the Federal Reserve initially responded using the federal funds rate. However, by December 2008 it had reached the zero lower bound (ZLB). With economic conditions still deteriorating the Federal Reserve used unconventional monetary policy actions in the form of Large-Scale Asset Purchases (LSAPs) to lower a range of long-term interest rates. The intention was to stimulate economic activity and promote recovery. The purpose of this dissertation is to analyze the effects of LSAPs from three perspectives. In the first chapter we find that LSAPs had a positive effect on the stock prices of some financial sectors. However, the effects were not as statistically significant for nonfinancial sectors. In the second chapter, we find that LSAPs helped the consumer and mortgage credit markets but not business credit. Overall the effects were weak. In the third chapter, we document the change in the Federal Reserve and banks' balance sheets as a result of LSAPs. It is clear that most of the liquidity injections remained as excess reserves, though we show an upper bound on how much of these injections went into new loans and deposits relative to cash or excess reserves. We discuss alternative ways that LSAPs could have mattered, such as through rebuilding bank balance sheets. Even though the liquidity injections may not be able to stimulate economic recovery they may help rebuilt and strengthen financial institutions. Restoring financial stability is beneficial to avoid a complete collapse of systemically important financial institutions.

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