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Negative interest on excess reserves is an instrument of unconventional monetary policy applied by central banks to encourage lending by making it costly for commercial banks to hold their excess reserves at central banks so they will lend more readily to the private sector. Such a policy is usually a response to very slow economic growth, deflation, and deleveraging.
The shadow rate is an interest rate in some financial models. It is used to measure the economy when nominal interest rates come close to the zero lower bound. It was created by Fischer Black in his final paper, "Interest Rates as Options".
References
- ↑ 18 Misconceptions about Eliminating the Zero Lower Bound
- ↑ "Estimating the Effective Lower Bound on the Czech National Bank's Policy Rate". Czech National Bank.
- ↑ Milton Friedman's Keynote address at the Bank of Canada
- ↑ Reichlin, L.; Turner, A.; Woodford, M (2013-05-20). "Helicopter money as a policy option". voxeu.org.
- ↑ Buiter, W. The Simple Analytics of Helicopter Money
- ↑ Print Less, but Transfer More, Foreign Affairs, Blyth, M., Lonergan, E
- ↑ Goodhart, C.A.E. (January 2013). "The Potential Instruments of Monetary Policy" (PDF). Financial Markets Group Paper (Special Paper 219). London School of Economics. 9-10. ISSN 1359-9151 . Retrieved 13 April 2013.
{{cite journal}}: Cite journal requires|journal=(help) - ↑ Blinder, Alan S. (February 2012). "Revisiting Monetary Policy in a Low-Inflation and Low-Utilization Environment". Journal of Money, Credit and Banking. 44 (Supplement s1): 141–146. doi:10.1111/j.1538-4616.2011.00481.x.