Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/203245
Authors: 
Ngotran, Duong
Year of Publication: 
2019
Series/Report no.: 
Economics Discussion Papers 2019-49
Abstract: 
The author develops a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, he assesses the efficacy of unconventional monetary policy since the Great Recession. After quantitative easing, keeping the interest on reserves near zero too long might create deflation. The central bank can safely get out of the "low rate-cum-deflation" trap by "raising rate and raising money supply".
Subjects: 
interest on reserves
quantitative easing
unwinding QE
e-money
excess reserves
raise rate raise money supply
JEL: 
E4
E5
Creative Commons License: 
https://creativecommons.org/licenses/by/4.0/
Document Type: 
Working Paper

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