Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270433 
Year of Publication: 
2023
Series/Report no.: 
Bank of Finland Research Discussion Papers No. 3/2023
Publisher: 
Bank of Finland, Helsinki
Abstract: 
We study asymmetric inflation effects of both conventional and unconventional monetary policy in the euro area during the period of low nominal interest rates. We find that rate cuts are inflationary also during low interest rates. Positive quantitative easing surprises have a deflationary effect, but negative quantitative easing surprises have no inflationary effects. This result may be explained by information effects. The effect of monetary policy depends on the size of policy surprise and is lower during recessions than during booms. We also provide evidence that interest rate policy, forward guidance and quantitative easing are complementary to one another.
Subjects: 
Monetary policy
asymmetric effects
inflation
JEL: 
E50
E31
ISBN: 
978-952-323-432-1
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.