Download or read book Monetary Policy and Its Unintended Consequences written by Raghuram Rajan and published by MIT Press. This book was released on 2023-11-14 with total page 143 pages. Available in PDF, EPUB and Kindle. Book excerpt: A call for an end to aggressive monetary policy and a return to smart growth from an eminent researcher and former central banker. Central banks took extraordinary measures to stabilize markets and enhance growth after the financial crisis of 2008, but without giving much thought to the long-term consequences. It was a response, Raghuram Rajan argues, that set a dangerous precedent: the more centrals bank did, the more they were expected to do, and the more they ended up doing. Monetary Policy and Its Unintended Consequences looks back at what this meant for where we are now. A former central banker who foresaw the 2008 crisis and wrote a bestselling book about the risks of excessively accommodative monetary policy, Rajan takes a hard look at central bank behavior and its embrace of increasingly aggressive strategies to keep economies afloat. Despite efforts to strengthen markets, the 2020 pandemic showed economies remain as vulnerable as ever to adverse shocks, prompting large-scale interventions that, in the case of Covid, led to persistent inflation and market volatility. By examining these undertheorized outcomes, Rajan hopes central banks will recognize the unintended consequences of using all of the instruments available to them, which will encourage them to return to their core mandates of low inflation and financial stability. Monetary Policy and Its Unintended Consequences is the most thorough account yet of the choices central banks have made to meet the economic challenges of our century and why they must rethink these choices.
Download or read book Unintended Consequences written by Edward Conard and published by Penguin. This book was released on 2013-04-30 with total page 321 pages. Available in PDF, EPUB and Kindle. Book excerpt: Was our country’s economic success before the Crash of ‘08 built on false pretenses? Did we simply borrow and spend too much, or was something else really going on? The conventional wisdom now accuses Wall Street and the mortgage industry of using predatory tactics to seduce homeowners. Meanwhile, average Americans are blamed for increasing consumption to unsustainable levels by borrowing recklessly. And the tax policies of the Reagan and Bush administrations are blamed for encouraging reckless risk-taking. Edward Conard disagrees. In an attempt to set the record straight he presents a fascinating new case for how the economy really works, why the U.S. has outperformed other countries, what caused the financial crisis, and what improvements might better protect our economy without damaging growth.
Download or read book Credit Securitization and Monetary Policy written by Mr.Andrea Pescatori and published by International Monetary Fund. This book was released on 2016-03-23 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: We show evidence that interest rate hikes slowdown loan growth but lead intermediation to migrate from banks’ balance sheets to non-banks via increased securitization activity. As such, higher interest rates have the potential for unintended consequences; raising systemic risk rather than lowering it by pushing more intermediation activity to more weakly regulated sectors. In the past, this increased securitization activity was driven primarily byb private-label securitization. On the other hand, the government sponsored entities like Freddie Mac and Fannie Mae appear to react to higher policy rates by cutting back on their securitization activity but expanding loans to the Federal Home Loan Bank system.
Download or read book Unintended Consequences of U S Monetary Policy Shocks Dutch Disease and Capital Flow Measures in Emerging Markets and Developing Economies written by Juan Yepez and published by International Monetary Fund. This book was released on 2021-08-06 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dutch disease is often referred as a situation in which large and sustained foreign currency inflows lead to a contraction of the tradable sector by giving rise to a real appreciation of the home currency. This paper documents that this syndrome has been witnessed by many emerging markets and developing economies (EMDEs) as a result of surges in capital inflows driven by accommodative U. S. monetary policy. In a sample of 25 EMDEs from 2000-17, U. S. monetary policy shocks coincided with episodes of currency appreciation and a contraction in tradable output in these economies. The paper also shows empirically that the use of capital flow measures (CFMs) has been a common policy response in several EMDEs to U.S. monetary policy shocks. Against this background, the paper presents a two sector small open economy augmented with a learning-by-doing (LBD) mechanism in the tradable sector to rationalize these empirical findings. A welfare analysis provides a rationale for the use of CFMs as a second-best policy when agents do not internalize the LBD externality of costly resource misallocation as a result of greater capital inflows. However, the adequate calibration of CFMs and the quantification of the LBD externality represent important implementation challenges.
Download or read book Aftermath written by Thomas E. Hall and published by Cato Institute. This book was released on 2014-08-11 with total page 155 pages. Available in PDF, EPUB and Kindle. Book excerpt: Government policies created for one set of purposes almost always generate additional results that were not part of the original plan. Very often these unintended consequences are seriously adverse, and in some cases are so severe as to render the policy a failure. In Aftermath, noted economist Thomas Hall examines four major instances of significant unintended consequences, all of them negative, resulting from major public policies: the federal income tax, cigarette taxes, minimum wage laws, and alcohol prohibition. Each widespread, well known policy was instituted as a positive measure, but almost immediately gave rise to enormously damaging consequences and harmful side effects. What were these terrible consequences? Hall demonstrates how these policies played a significant role in creating America’s vast welfare state, criminal activities, a bloated government hungry for more revenue, smuggling, a scarcity of jobs for teenagers and the working poor, corrupt public officials, overcrowded prisons, and much more. Not exactly what the originators had foreseen. Hall’s exploration of these four iconic policies offers powerful optics for examining current and proposed policies, and he provides an overview of the new and emerging consequences of the Affordable Care Act, the Dodd-Frank Act, and the war on drugs. With the pace of government policymaking continuing unabated, Hall’s insights on how to examine and minimize the potential outcomes of bureaucratic activity before they can potentially harm the pubic—in ways not intended or anticipated—are more necessary and vital than ever before.
Download or read book Engine of Inequality written by Karen Petrou and published by John Wiley & Sons. This book was released on 2021-03-03 with total page 291 pages. Available in PDF, EPUB and Kindle. Book excerpt: The first book to reveal how the Federal Reserve holds the key to making us more economically equal, written by an author with unparalleled expertise in the real world of financial policy Following the 2008 financial crisis, the Federal Reserve’s monetary policy placed much greater focus on stabilizing the market than on helping struggling Americans. As a result, the richest Americans got a lot richer while the middle class shrank and economic and wealth inequality skyrocketed. In Engine of Inequality, Karen Petrou offers pragmatic solutions for creating more inclusive monetary policy and equality-enhancing financial regulation as quickly and painlessly as possible. Karen Petrou is a leading financial-policy analyst and consultant with unrivaled knowledge of what drives the decisions of federal officials and how big banks respond to financial policy in the real world. Instead of proposing legislation that would never pass Congress, the author provides an insider's look at politically plausible, high-impact financial policy fixes that will radically shift the equality balance. Offering an innovative, powerful, and highly practical solution for immediately turning around the enormous nationwide problem of economic inequality, this groundbreaking book: Presents practical ways America can and should tackle economic inequality with fast-acting results Provides revealing examples of exactly how bad economic inequality in America has become no matter how hard we all work Demonstrates that increasing inequality is disastrous for long-term economic growth, political action, and even personal happiness Explains why your bank's interest rates are still only a fraction of what they were even though the rich are getting richer than ever, faster than ever Reveals the dangers of FinTech and BigTech companies taking over banking Shows how Facebook wants to control even the dollars in your wallet Discusses who shares the blame for our economic inequality, including the Fed, regulators, Congress, and even economists Engine of Inequality: The Fed and the Future of Wealth in America should be required reading for leaders, policymakers, regulators, media professionals, and all Americans wanting to ensure that the nation’s financial policy will be a force for promoting economic equality.
Download or read book The Unintended Consequences of Dodd Frank s Conflict Minerals Provision written by United States. Congress and published by Createspace Independent Publishing Platform. This book was released on 2017-12-12 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: The unintended consequences of Dodd-Frank's conflict minerals provision : hearing before the Subcommittee on Monetary Policy and Trade of the Committee on Financial Services, U.S. House of Representatives, One Hundred Thirteenth Congress, first session, May 21, 2013.
Download or read book The New Financial Deal written by David Skeel and published by John Wiley & Sons. This book was released on 2010-11-29 with total page 243 pages. Available in PDF, EPUB and Kindle. Book excerpt: The good, the bad, and the scary of Washington's attempt to reform Wall Street The Dodd-Frank Wall Street Reform and Consumer Protection Act is Washington's response to America's call for a new regulatory framework for the twenty-first century. In The New Financial Deal, author David Skeel offers an in-depth look at the new financial reforms and questions whether they will bring more effective regulation of contemporary finance or simply cement the partnership between government and the largest banks. Details the goals of the legislation, and reveals that how they are handled could dangerously distort American finance, making it more politically charged, less vibrant, and further removed from basic rule of law principles Provides an inside account of the legislative process Outlines the key components of the new law To understand what American financial life is likely to look like in five, ten, or twenty years, and how regulators will respond to the next crisis, we need to understand Dodd-Frank. The New Financial Deal provides that understanding, breaking down both what Dodd-Frank says and what it all means.
Download or read book Sociological Ambivalence and Other Essays written by Robert King Merton and published by Simon and Schuster. This book was released on 1976 with total page 312 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Unintended Consequences written by Deepak Lal and published by MIT Press. This book was released on 2001 with total page 308 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this book, based on the 1995 Ohlin Lectures, Deepak Lal provides an accessible, interdisciplinary account of the role of culture in shaping economic performance. Topics addressed include a possible future "clash of civilizations," the role of Asian values in the East Asian economic miracle, the cultural versus economic causes of social decay in the West, and whether modernization leads to Westernization. Lal makes an important distinction between material and cosmological beliefs, showing how both were initially shaped by factor endowments and how they have evolved in response to changing historical pressures in different civilizations. Lal's first major theme is the interaction of factor endowments, culture, and politics in explaining modern intensive growth in the West. The other major theme is the role of individualism--an inadvertent legacy of the medieval Catholic Church--in promoting this growth, and the strange metamorphoses this has caused in both the West's cosmological beliefs and the interaction between "the West and the rest." Lal takes account of the relevant literature in history, anthropology, social psychology, evolutionary biology, neurology, and sociology, and the economic history of the regions and cultures that form Eurasia. An appendix shows how the stories Lal tells can be described by four formal economic models.
Download or read book The Unintended Consequences of Dodd Frank s Conflict Minerals Provision written by United States. Congress. House. Committee on Financial Services. Subcommittee on Monetary Policy and Trade and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Unintended Consequences of the Zero Lower Bound Policy written by Marco Di Maggio and published by . This book was released on 2016 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the impact of the zero lower bound interest rate policy on the industrial organization of the U.S. money fund industry. We find that in response to policies that maintain low interest rates, money funds: change their product offerings by investing in riskier asset classes; are more likely to exit the market; and reduce the fees they charge their investors. The consequence of fund closures resulting from interest rate policy is the relocation of resources in affected fund families and in the asset management industry in general, as well as decline in capital of issuers borrowing from money funds.
Download or read book The Federal Reserve System Purposes and Functions written by Board of Governors of the Federal Reserve System and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Download or read book Innovative Federal Reserve Policies During the Great Financial Crisis written by Douglas Darrell Evanoff and published by Wspc/Now. This book was released on 2018-03 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book, Innovative Federal Policies During the Great Financial Crisis, contains discussions of unconventional monetary policies, policy changes to address systemic and payments systems risks, new macroprudential policies, the 'stretching' of the financial safety net, changes in the Fed's liquidity funding facility (the discount window), use of the Fed's balance sheet as a tool of monetary policy, and alternative means to deal with real-estate asset bubbles and potential financial instability. The 10 chapters in this book offer a unique analysis of several innovative approaches by the Federal Reserve that contributed to the stabilization of the US economy following the Great Recession. What unique policies were implemented? Toward what goal? Were they effective? Were there unintended consequences? Additionally, but less thoroughly, events in the Euro market are also discussed, and policies (and their impact) of the ECB are critiqued. Based on papers presented at the 91st Annual Conference of the Western Economic Association International Meetings in Portland, Oregon, 2016, Innovative Federal Policies During the Great Financial Crisis adds significantly to the debate over why innovative or unconventional policies were needed, how they were implemented and how effective they were.
Download or read book The Long Journey of Central Bank Communication written by Otmar Issing and published by MIT Press. This book was released on 2019-09-24 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: A leading economist and former central banker discusses the evolution of central bank communication from secretiveness to transparency and accountability. Central bank communication has evolved from secretiveness to transparency and accountability—from a reluctance to give out any information at all to the belief in communication as a panacea for effective policy. In this book, Otmar Issing, himself a former central banker, discusses the journey toward transparency in central bank communication. Issing traces the development of transparency, examining the Bank of England as an example of extreme reticence and European Central Bank's President Mario Draghi as a practitioner of effective communication. He argues that the ultimate goal of central bank communication is to make monetary policy more effective, and describes the practice and theory of communication as an evolutionary process. For a long time, the Federal Reserve never made its monetary policy decisions public; the European Central Bank, on the other hand, had to adopt a modern communication strategy from the outset. Issing discusses the importance of guiding expectations in central bank communication, and points to financial markets as the most important recipients of this communication. He discusses the obligations of accountability and transparency, although he notes that total transparency is a “mirage.” Issing argues that the central message to the public must always be that the stability of a nation's currency is the bank's priority.
Download or read book Monetary Policy Macroprudential Policy and Financial Stability written by and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Recent research developed under the ECB research task force on Monetary Policy, Macroprudential Policy and Financial Stability highlights the existence of trade-offs and spillovers that monetary policy and macroprudential authorities face when deciding on their policy interventions. Monetary policy measures are key to support the supply of credit to the economy, but they could also have unintended consequences on financial stability risks. Macroprudential policies are instead effective in limiting financial stability risks, but they could also reduce the length of economic expansions by preventing credit from flowing to productive economic activities. In addition, since monetary and macroprudential policies transmit to the broad economy via the financial system, they unavoidably affect each other's effectiveness. Taking these factors into account is key for the design and implementation of both policies.
Download or read book Banking and Monetary Policy from the Perspective of Austrian Economics written by Annette Godart-van der Kroon and published by Springer. This book was released on 2018-07-23 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book discusses contemporary banking and monetary policy issues from the perspective of the Austrian School of Economics. Based on the heritage of the Austrian school, leading scholars and practitioners offer a coherent diagnosis and analysis of the factors leading to Europe’s current financial crisis. The first part of the book discusses Ludwig von Mises’s and Friedrich August von Hayek’s ideas on banking and monetary policy from both historical and economic standpoints. It includes contributions on Austrian monetary dynamics and micro-foundational business cycle theory, von Mises’s concepts of liquidity and solvency of fractional-reserve banks, and liberalism of Austrian economics. The second part analyzes the measures taken by the European Central Bank (ECB) in light of the ideas of von Mises and Hayek. It includes contributions on non-neutrality of money, ECB monetary policy, and the future of the ECB. The third and final part presents discussions on monetary reforms, including contributions on Bitcoins, Cryptocurrencies and anti-deflationist Paranoia.
