scholarly journals Credit Risk, Excess Reserves and Monetary Policy: The Deposits Channel

2018 ◽  
Author(s):  
George Bratsiotis
Keyword(s):  
Monetary Policy ◽  
Credit Risk ◽  
Excess Reserves

Prices may rise if lending picks up in major economies

2020 ◽  
Keyword(s):  
Monetary Policy ◽  
Stock Market ◽  
Crisis Response ◽  
Stock Market Volatility ◽  
Monetary Aggregate ◽  
Content Type ◽  
Excess Reserves ◽  
Central Bank Money ◽  
Pass Through ◽  
Bank Money

Significance Similar fears accompanied the 2008-09 anti-crisis response, but did not come true. The main reason is that, while quantitative easing and other measures boost the monetary base (M0), inflation is more likely to be fired by strong growth in the broadest monetary aggregate (M3); so far, there has been limited pass-through from M0 to M3. Impacts Central bank money supply is underwriting stock market gains, an intended monetary policy outcome; but stock market volatility is rising. If higher inflation does occur, central banks have the tools to control it; indeed, rising prices has been a central monetary policy goal. If inflationary pressures do appear, reducing the large volumes of banks’ excess reserves will require adroit management.

scholarly journals Excess reserves and monetary policy implementation

2017 ◽  
Vol 23 ◽  
pp. 212-235 ◽  
Author(s):  
Roc Armenter ◽  
Benjamin Lester
Keyword(s):  
Monetary Policy ◽  
Policy Implementation ◽  
Excess Reserves
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