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FINANCIAL STABILITY UNDER THE UNCONVENTIONAL MONETARY POLICY: A THEORETICAL INVESTIGATION

Year 2020, Volume: 9 Issue: 4, 461 - 468, 31.12.2020

Abstract

Unconventional monetary policy instruments manage the supply of loans at optimal borrowing costs. In particular, the quantitative easing implemented in conjunction with the effective lower limit promotes credit supply by providing liquidity to the market in return for financial assets. Accordingly, the set of economic hypotheses underlying the quantitative easing aims to balance the balance sheets of other financial market participants by extending the central bank balance sheet and to increase the monetary base externally. This process is based on the assumption that not all economic agents are indifferent to quantitative easing. In this study, firstly unconventional monetary policy and asset pricing developed after the 2008 global crisis are analyzed methodologically. Afterwards, the relationship between unconventional monetary policy instruments and financial markets is evaluated within the framework of portfolio balance model.

References

  • BOEHM, C.E. ve HOUSE, C.L. (2014). Optimal Taylor Rules in New Keynesian Models. NBER Working Paper, 20237, 1-39.
  • CLARIDA, R., GALI, J. ve GERTLER, M. (2000). Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory. The Quarterly Journal of Economics, 115(1), 147-180.
  • CURDIA V. ve WOODFORD, M. (2011). The Central Bank Balance Sheet as an Instrument of Policy’. Journal of Monetary Economics, 58, 54–79.
  • FARMER, R.E.A. (2012). The Effect of Conventional and Unconventional Monetary Policy Rules on Inflation Expectations: Theory and Evidence. NBER Working Paper, 18007, 1-23.
  • GUERINI, M., LAMPBERTI, F. ve MAZZOCCHETTI, A. (2018). Unconventional Monetary Policy: Between the Past and Future of Monetary Economics. ISG Working Paper, 18007, 1-14.
  • JOYCE, M., DAVID, M., SCOTT, A. ve VAYANOS, D. (2012). QuantitativeEasing and Unconventional Monetary Policy. The Economic Journal, 122, 271-288.
  • MILES, D. (2011). Monetary Policy and Financial Dislocation. Royal Economic Societylecture.http://www.bankofengland.co.uk/publications/speeches/2011/speech521.pdf (last accessed: 23 July 2012).
  • MODIGLIANI, F. ve SUTCH, R. (1966). Innovations in Interest Rate Policy. The American Economic Review, 56(1), 178-197.
  • NELSON, C. (1972). The Term Structure of Interest Rates. New York: Basic Books.
  • ORPHANIDES, A. (2004). Monetary Policy Rules, Macroeconomic Stability and Inflation: A View From the Trenches. Journal of Money Credit and Banking, 36(2), 151-175.
  • RUDEBUSCH, G.D. (2001). Term Structures Evidence on Interest Rate Smoothing and Monetary Policy Inertia. Journal of Moneraty Economics, 49, 1161-1187.
  • TAYLOR, J.B. (1993). Discretion Versus Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195-214
  • TINBERGEN, J. (1952). On the Theory of Economic Policy. Amsterdam: North-Holland Publishing Company.
  • WOODFORD, M. (2001). The Taylor Rule and Optimal Monetary Policy. The American Economic Review, 91(2), 232-237.
  • WU, J., C. ve ZHANG, J. (2018). Global Effcetive Lower Bound and Unconventional Monetary Policy. NBER Working Paper, 24714, 1-46.

GELENEKSEL OLMAYAN PARA POLİTİKASI KAPSAMINDA FİNANSAL İSTİKRAR: TEORİK BİR İNCELEME

Year 2020, Volume: 9 Issue: 4, 461 - 468, 31.12.2020

Abstract

Geleneksel olmayan para politikası araçları, en uygun borçlanma maliyetinde kredi arzını yönetir. Özellikle, etkili alt sınırla birlikte uygulanan niceliksel genişleme, finansal varlıkların karşılığında piyasaya likidite sağlayarak kredi arzını destekler. Buna göre, niceliksel genişlemenin altında yatan ekonomik hipotezler seti, merkez bankası bilançosunun genişletilerek diğer finansal piyasa katılımcılarının bilançolarının dengelenmesi ve para tabanının dışsal olarak artırılmasını amaçlar. Bu süreç, tüm ekonomik birimlerin niceliksel genişlemeye kayıtsız kalmadığı varsayımına dayanır. Bu çalışmada, öncelikle 2008 küresel kriz sonrasında geliştirilen geleneksel olmayan para politikası ve varlık fiyatlandırması metodolojik olarak incelenmiştir. Sonrasında ise, geleneksel olmayan para politikası araçlarıyla finansal piyasalar arasındaki ilişki portföy dengesi modeli çerçevesinde değerlendirilmiştir.

References

  • BOEHM, C.E. ve HOUSE, C.L. (2014). Optimal Taylor Rules in New Keynesian Models. NBER Working Paper, 20237, 1-39.
  • CLARIDA, R., GALI, J. ve GERTLER, M. (2000). Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory. The Quarterly Journal of Economics, 115(1), 147-180.
  • CURDIA V. ve WOODFORD, M. (2011). The Central Bank Balance Sheet as an Instrument of Policy’. Journal of Monetary Economics, 58, 54–79.
  • FARMER, R.E.A. (2012). The Effect of Conventional and Unconventional Monetary Policy Rules on Inflation Expectations: Theory and Evidence. NBER Working Paper, 18007, 1-23.
  • GUERINI, M., LAMPBERTI, F. ve MAZZOCCHETTI, A. (2018). Unconventional Monetary Policy: Between the Past and Future of Monetary Economics. ISG Working Paper, 18007, 1-14.
  • JOYCE, M., DAVID, M., SCOTT, A. ve VAYANOS, D. (2012). QuantitativeEasing and Unconventional Monetary Policy. The Economic Journal, 122, 271-288.
  • MILES, D. (2011). Monetary Policy and Financial Dislocation. Royal Economic Societylecture.http://www.bankofengland.co.uk/publications/speeches/2011/speech521.pdf (last accessed: 23 July 2012).
  • MODIGLIANI, F. ve SUTCH, R. (1966). Innovations in Interest Rate Policy. The American Economic Review, 56(1), 178-197.
  • NELSON, C. (1972). The Term Structure of Interest Rates. New York: Basic Books.
  • ORPHANIDES, A. (2004). Monetary Policy Rules, Macroeconomic Stability and Inflation: A View From the Trenches. Journal of Money Credit and Banking, 36(2), 151-175.
  • RUDEBUSCH, G.D. (2001). Term Structures Evidence on Interest Rate Smoothing and Monetary Policy Inertia. Journal of Moneraty Economics, 49, 1161-1187.
  • TAYLOR, J.B. (1993). Discretion Versus Policy Rules in Practice. Carnegie-Rochester Conference Series on Public Policy, 39, 195-214
  • TINBERGEN, J. (1952). On the Theory of Economic Policy. Amsterdam: North-Holland Publishing Company.
  • WOODFORD, M. (2001). The Taylor Rule and Optimal Monetary Policy. The American Economic Review, 91(2), 232-237.
  • WU, J., C. ve ZHANG, J. (2018). Global Effcetive Lower Bound and Unconventional Monetary Policy. NBER Working Paper, 24714, 1-46.
There are 15 citations in total.

Details

Primary Language Turkish
Subjects Economics
Journal Section Articles
Authors

Ayşegül Ladin Sümer This is me

Publication Date December 31, 2020
Published in Issue Year 2020 Volume: 9 Issue: 4

Cite

APA Ladin Sümer, A. (2020). GELENEKSEL OLMAYAN PARA POLİTİKASI KAPSAMINDA FİNANSAL İSTİKRAR: TEORİK BİR İNCELEME. Sakarya İktisat Dergisi, 9(4), 461-468.