Dai, Meixing (2011): Les « hélicoptères » des banques centrales. Published in: Bulletin de l'Observatoire des Politiques Economiques en Europe , Vol. 24, No. 5 (June 2011): pp. 17-23.
Download (201kB) | Preview
The effects of quantitative easing policy, which looks like a “helicopter dropping” of money, are quite complex. Implemented following a major crisis induced by the deflation of bubbles on asset prices, this policy creates redistributive effects in favour of financial and banking institutions without effectively stimulating the growth due to its character of restricted currency distribution. Banking and sovereign debt crises in the euro area implies that the European Central Bank must reform the way it “drops” the money to effectively reduce the financing costs of financially constrained agents, including the governments of the member States of EMU.
|Item Type:||MPRA Paper|
|Original Title:||Les « hélicoptères » des banques centrales|
|English Title:||The central banks' helicopters|
|Keywords:||Quantitative easing; liquidity trap; monetary policy reform; sovereign debt and banking crisis; deflation|
|Subjects:||E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies
E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy
E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy
|Date Deposited:||05 Nov 2011 08:24|
|Last Modified:||03 Dec 2016 06:04|
Buiter, Willem H. (2005), “New developments in monetary economics: Two ghosts, two eccentricities, a fallacy, a mirage and a mythos,” Economic Journal 115(502), C1-C31.
Farhi, Emmanuel et Jean Tirole (2009), “Leverage and the Central Banker’s Put,” American Economic Review 99(2), 589-93.
Giavazzi, Francesco and Alberto Giovannini (2010), “The low-interest-rate trap,” VOX http://www.voxeu.org/index.php?q=node/5309.
Leijonhufvud, Axel (2008), “Keynes and the Crisis,” CEPR Policy Insight No. 23, 1-6.
Xie, Andy (2011), “If world is getting wealthier, why do we feel poorer?” MarketWatch, http://www.marketwatch.com/story/as-rich-get-richer-we-head-for-inflationary-doom-2011-02-01?pagenumber=2.