scholarly journals IS THERE A “LOW INTEREST RATE TRAP”?

Ekonomika ◽  
2012 ◽  
Vol 91 (1) ◽  
pp. 7-23 ◽  
Author(s):  
Kui-Wai Li
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Output Growth ◽  
Theoretical Discussion ◽  
2008 Financial Crisis ◽  
Investment Returns ◽  
The 2008 Financial Crisis ◽  
The U.S

This article stylizes the monetary policy features applied during the chairmanship of Mr. Alan Greenspan and condenses statistical discussion into the “low interest rate trap” in the U.S. economy. Data from the U.S. in the decade prior to the 2008 financial crisis are used. A monetarist solution to the “low interest rate trap” is provided. The paper challenges the theoretical discussion on the Keynes’ interest rate – output relationship, and poses the question whether difference in investment returns would present a different picture in output growth.

scholarly journals The Relationship Between Money Supply, Interest Rate and Inflation Rate: an Endogeneity-Exogeneity Approach

2017 ◽  
Vol 13 (1) ◽  
pp. 30 ◽  
Author(s):  
Fatih Kaplan ◽  
Sule Gungor
Keyword(s):  
Interest Rate ◽  
Financial Crisis ◽  
Money Supply ◽  
Decomposition Method ◽  
Inflation Rate ◽  
2008 Financial Crisis ◽  
Vector Autoregression Model ◽  
The 2008 Financial Crisis ◽  
The Relationship ◽  
Policy Proposals

After the 2008 Financial Crisis, The Central Bank is Turkey as well as many countries, has implemented a policy of increasing the money supply. It is a known fact that the changes in the money supply are considerable extent determinative in interest rate and inflation rate such as orientations of macro economics variables. The purpose of this study is to investigate the relationship between money supply, interest rate and inflation rate in Turkey after the 2008 Financial Crisis. In accordance with this purpose, 2008:1- 2015:12 period money supply, interest rate and inflation rate monthly data are used. Commonly in applied studies, the relationship between these variables is analysed with Cholesky Decomposition Method of Variance based Vector Autoregression Model (VAR). But this method is affected by ordering of the variables according to endogeneity-exogeneity approach, when ordering of the variables were changed, the results are changed and therefore policy proposals are changed. In analysis of the study, both Cholesky and Pesaran and Shin’s proposal method is used. According to Cholesky Variance Decomposition result at the end of the a month, when all changes in inflation is explained by inflation, this rate is 85% according to Generalized Decomposition Method of Variance result.

scholarly journals Implementing Monetary Policy after the 2008 Financial Crisis

2019 ◽  
Vol 7 (9) ◽  
pp. 141-172
Author(s):  
Ioannis N. Kallianiotis
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Target Range ◽  
Federal Funds ◽  
2008 Financial Crisis ◽  
Policy Interventions ◽  
Federal Funds Market ◽  
The 2008 Financial Crisis

Every six weeks or so (9 times during the year), the financial world watches as the Federal Open Market Committee (FOMC) decides on a target interest rate in the federal funds market for the next period. But what happens next? How do policymakers make sure that interest rates in the fed funds market trade within the target range? What will be the effect of the new target rate on the Wall Street and the Main Street? How efficient is so far the monetary policy after the latest global financial crisis? Is the target rate the correct one? The framework that the FOMC uses to implement monetary policy has changed over the last decade and continues to evolve today. Before the 2008 financial crisis, policymakers used one set of instruments to achieve the target rate. However, several policy interventions introduced soon after the crisis drastically altered the landscape of the federal funds market. This new and uncertain environment, with enormous reserves, necessitated a new set of instruments for monetary policy implementation. Lately, after December 2015, as the FOMC began to unwind the effects of these policy interventions, some questions arise: What rules will be followed by the Fed? What happens next as the federal funds market converges to a “new normal”? How effective will be the new policy? Can the Fed prevent a new crisis? The federal funds rate is very low and affects negatively the financial markets (bubbles are growing), the real rates of interest, and the deposit rates, which means the true economic welfare is falling and a new global recession is in preparation, if the latest easy money policy will continue.

scholarly journals Borrowing Constraints and Homeownership

2016 ◽  
Vol 106 (5) ◽  
pp. 625-629 ◽  
Author(s):  
Arthur Acolin ◽  
Jesse Bricker ◽  
Paul Calem ◽  
Susan Wachter
Keyword(s):  
Financial Crisis ◽  
Borrowing Constraints ◽  
2008 Financial Crisis ◽  
Percentage Points ◽  
Homeownership Rate ◽  
The 2008 Financial Crisis ◽  
The Impact ◽  
The U.S

This paper identifies the impact of borrowing constraints on homeownership in the U.S. in the aftermath of the 2008 financial crisis. While homeownership declines and tightened credit are evident, the role the tightening of credit has had on the probability of individual households to become homeowners has not been previously identified. The homeownership rate in 2010-2013 is estimated to be 2.3 percentage points lower than if the constraints were set at the 2001 level.

Mathematics without Apologies

2017 ◽  
Author(s):  
Michael Harris
Keyword(s):  
Number Theory ◽  
Financial Crisis ◽  
Pop Culture ◽  
First Century ◽  
2008 Financial Crisis ◽  
Dinner Party ◽  
Mathematical Life ◽  
Personal Experiences ◽  
The 2008 Financial Crisis ◽  
Guided Tour

What do pure mathematicians do, and why do they do it? Looking beyond the conventional answers, this book offers an eclectic panorama of the lives and values and hopes and fears of mathematicians in the twenty-first century, assembling material from a startlingly diverse assortment of scholarly, journalistic, and pop culture sources. Drawing on the author's personal experiences as well as the thoughts and opinions of mathematicians from Archimedes and Omar Khayyám to such contemporary giants as Alexander Grothendieck and Robert Langlands, the book reveals the charisma and romance of mathematics as well as its darker side. In this portrait of mathematics as a community united around a set of common intellectual, ethical, and existential challenges, the book touches on a wide variety of questions, such as: Are mathematicians to blame for the 2008 financial crisis? How can we talk about the ideas we were born too soon to understand? And how should you react if you are asked to explain number theory at a dinner party? The book takes readers on an unapologetic guided tour of the mathematical life, from the philosophy and sociology of mathematics to its reflections in film and popular music, with detours through the mathematical and mystical traditions of Russia, India, medieval Islam, the Bronx, and beyond.

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