infonet-economy

In: Constitutional Political Economy, 2011, vol. 22, no. 2, p. 191-197

In: Public Choice, 2012, vol. 150, p. 27-49

In: Oxford Economic Papers, 2014, vol. 66, no. 2, p. 443-464

As negative interest rates exert pressure on bank profitability, several central banks have introduced reserve tiering systems to lessen the burden. Reserve tiering means that banks are only charged the negative policy rate above a certain threshold of reserves. Altering the threshold affects bank profits and therefore has potential effects on the macroeconomy and financial stability...

Bolli, Thomas; Caves, Katherine M.; Pusterla, Filippo; Rageth, Ladina; Renold, Ursula; Sritharan, Aranya; Trachsel Díaz-Tejeiro, Sandra

Bolli, Thomas; Caves, Katherine M.; Pusterla, Filippo; Rageth, Ladina; Renold, Ursula; Sritharan, Aranya; Trachsel Díaz-Tejeiro, Sandra

Mönninghoff, Annette; Kramer, Jan-Niklas; Hess, Alexander; Ismailova, Kamila; Teepe, Gisbert; Tudor Car, Lorainne; Müller-Riemenschneider, Falk; Kowatsch, Tobias

This paper strives to contribute three things to the literature. The first is a line-sketch theory model that puts consumers into the value chain. It emphasizes the value-creating aspect of superior matching between consumers preferences and the varieties when they can purchase online (and thus have access to a broader range of varieties than is available locally). We indirectly test...

Empirical research suggests that lower interest rates induce banks to take higher risks. We assess analytically what this risk-taking channel implies for optimal monetary policy in a tractable New Keynesian model. We show that this channel creates a motive for the planner to stabilize the real rate. This objective conflicts with the standard inflation stabilization objective. Optimal...