Low Interest Rate Policy of the European Central Bank (ECB). Introductory Thoughts on the Current Situation

2015 ◽  
Author(s):  
Manfred O. E. Hennies ◽  
Matti Raudjjrv
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
European Central Bank ◽  
Current Situation ◽  
Interest Rate Policy ◽  
European Central ◽  
Rate Policy

scholarly journals Comparison of the Approach of the Czech National Bank and the European Central Bank to the Effects of the Global Financial Crisis

2021 ◽  
Vol 10 (2) ◽  
pp. 18-46
Author(s):  
Andrea Cecrdlova
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Central Bank ◽  
European Central Bank ◽  
Global Financial Crisis ◽  
Central Banks ◽  
European Central ◽  
National Bank ◽  
The Global Financial Crisis

The latest global crisis, which fully erupted in 2008, can have a significant impact on central banks credibility in the long run. During the last crisis, monetary authorities encountered zero interest rate levels and, as a result, started to use non-standard monetary policy instruments. The Czech National Bank decided to use a less standard instrument in November 2013, when it started to intervene on the foreign exchange market in order to keep the Czech currency at level 27 CZK / EUR. However, the European Central Bank also adopted a non-standard instrument, when chose a path of quantitative easing in 2015 in order to support the euro area economy by purchasing financial assets. The question remains whether the approach of Czech National Bank or the approach of European Central Bank in the crisis and post-crisis period was a more appropriate alternative. With the passage of time from the global financial crisis, it is already possible to compare the approaches of these two central banks and at least partially assess what approach was more appropriate under the given conditions. When comparing the central banks approaches to the crisis, the Czech National Bank was better, both in terms of the rate of interest rate cuts and the resulting inflation with regard to the choice of a non-standard monetary policy instrument. The recent financial crisis has revealed the application of moral hazard in practice, both on behalf of the European Central Bank and the Czech National Bank, which may have a significant impact on their credibility and independence in the coming years.

Modeling of the interest rate policy of the central bank of Russia

2017 ◽  
Author(s):  
A. G. Shelomentsev ◽  
D. B. Berg ◽  
A. A. Detkov ◽  
A. P. Rylova
Keyword(s):  
Interest Rate ◽  
Central Bank ◽  
Interest Rate Policy ◽  
Rate Policy ◽  
The Interest Rate

scholarly journals A Simple Model of Interbank Trading with Tiered Remuneration

2020 ◽  
Vol 8 (1) ◽  
pp. 74
Author(s):  
Toshifumi Nakamura
Keyword(s):  
Simple Model ◽  
Interest Rates ◽  
European Central Bank ◽  
Interbank Market ◽  
Interest Rate Policy ◽  
European Central ◽  
Basic Model ◽  
National Bank ◽  
Rate Policy ◽  
Negative Interest Rate Policy

A negative interest rate policy is often accompanied by tiered remuneration, which allows exemption from negative rates. This study proposes a basic model of interest rates in an interbank market with a tiering system. The results largely mirror actual market developments in late 2019, when the European Central Bank introduced the tiering system and the Switzerland National Bank modified it.

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