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on Central Banking |
| By: | Francesca Carapella; Jin-Wook Chang; Sebastian Infante; Melissa Leistra; Arazi Lubis; Alexandros Vardoulakis |
| Abstract: | A Central Bank Digital Currency (CBDC) is a form of digital money that is denominated in the national unit of account, constitutes a direct liability of the central bank, and can be distinguished from other central bank liabilities. We examine the positive and negative implications for financial stability of a CBDC under different design options. We base our analysis on the lessons derived from historical case studies as well as on analytical frameworks useful to characterize the mechanisms through which a CBDC can affect financial stability. We further discuss various policy tools that can be employed to mitigate financial stability risks. |
| Keywords: | CBDC; Financial stability; Runs; Stablecoins; Central bank liabilities; Regulation |
| JEL: | E40 E50 G01 G21 G23 G28 |
| Date: | 2024–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2024-21&r=cba |
| By: | Natalia ANDRIES (ERUDITE, Université Paris-Est); Steve BILLON (LaRGE Research Center, Université de Strasbourg) |
| Abstract: | This paper theoretically investigates the effect of bank cost-efficiency on the transmission of monetary policy impulses to bank lending rates. In a monopolistic competition setting that displays increasing marginal costs, we show that the distortion of the interest rate pass-through depends on the nature of the bank cost-efficiency shock. If banks increase their cost-efficiency on loan activities, the monetary policy transmission is strengthened. Instead, if banks experience an improvement in their cost-efficiency on deposit activities, the interest rate pass-through is weakened. |
| Keywords: | Bank cost-efficiency; Bank interest rates; Monetary policy transmission; Interest rate pass-through; Bank imperfect competition |
| JEL: | E43 E52 G21 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:lar:wpaper:2024-04&r=cba |
| By: | Ṣebnem Kalemli-Özcan; Filiz D. Unsal |
| Abstract: | Contrary to historical episodes, the 2022–2023 tightening of US monetary policy has not yet triggered financial crisis in emerging markets. Why is this time different? To answer this question, we analyze the current situation through the lens of historical evidence. In emerging markets, the financial channel–based transmission of US policy historically led to more adverse outcomes compared to advanced economies, where the trade channel fails to smooth out these negative effects. When the Federal Reserve increases interest rates, global investors tend to shed risky assets in response to the tightening global financial conditions, affecting emerging markets more severely due to their lower credit ratings and higher risk profiles. This time around, the escape from emerging market assets and the increase in risk spreads have been limited. We document that the historical experience of higher risk spreads and capital outflows can be largely explained by the lack of credible monetary policies and dollar-denominated debt. The improvement in monetary policy frameworks combined with reduced levels of dollar-denominated debt have helped emerging markets weather the recent Federal Reserve hikes. |
| JEL: | F30 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32329&r=cba |
| By: | Karsten O. Chipeniuk (Economics Department, Reserve Bank of New Zealand); Eric M. Leeper (Department of Economics, University of Virginia); Todd B. Walker (Department of Economics, Indiana University) |
| Abstract: | We consider fiscal and monetary policy interactions in the continuous-time HANK framework. We find that heterogeneity fundamentally alters the way in which monetary policy shocks propagate in equilibrium. Fiscal shocks have inflationary consequences even when policy parameters are consistent with accommodating (passive) fiscal policy. By eliminating income effects through a complex transfers process, monetary policy can once again regain control of inflation. However, meaningful heterogeneity or heterogeneity in which a representative-agent approximation is poor, requires a complex set of transfers that do not resemble reality. With a realistic calibration for the distribution of wealth, fiscal policy will always impinge on inflation regardless of policy parameters. We thus conclude that monetary policy is fiscal policy according to HANK. |
| Keywords: | Heterogeneous Agents, Monetary and Fiscal Policy Interactions |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2024004&r=cba |
| By: | Paul De Grauwe; Yuemei Ji |
| Abstract: | In a world of radical uncertainty the frequency distributions of economic variables deviate from the normal distribution and typically exhibit fat tails. We show that this feature is obtained in simple models where agents have cognitive limitations and fail to understand the underlying model. Although the model is simple, we obtain great complexity. We analyse the implications for monetary policy. We show that in such models the central bank bears a much greater responsibility to stabilize an otherwise unstable system than in mainstream models that assume Rational Expectations. We also question the use of impulse responses to exogenous shocks when the distribution of these impulse responses is not normal. |
| Keywords: | radical uncertainty, monetary policy |
| JEL: | E52 E58 E70 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11068&r=cba |
| By: | Manuel Amador; Javier Bianchi |
| Abstract: | We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where banks may default because of fundamental or self-fulfilling runs. With only fundamental defaults, we show that the competitive equilibrium is constrained efficient. However, when banks are vulnerable to runs, banks’ leverage decisions are not ex-ante optimal: individual banks do not internalize that higher leverage makes other banks more vulnerable. The theory calls for introducing minimum capital requirements, even in the absence of bailouts. |
| JEL: | E32 E44 E58 G01 G21 G33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32341&r=cba |
| By: | Rohan Kekre; Moritz Lenel; Federico Mainardi |
| Abstract: | We develop a segmented markets model which rationalizes the effects of monetary policy on the term structure of interest rates. When arbitrageurs’ portfolio features positive duration, an unexpected rise in the short rate lowers their wealth and raises term premia. A calibration to the U.S. economy accounts for the transmission of monetary shocks to long rates. We discuss the additional implications of our framework for state-dependence in policy transmission, the volatility and slope of the yield curve, and trends in term premia accompanying trends in the natural rate. |
| JEL: | E44 E63 G12 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32324&r=cba |
| By: | Lilian Muchimba (Bank of Zambia); Mimoza Shabani (University of East London); Alexis Stenfors (University of Portsmouth); Jan Toporowski (University of Portsmouth) |
| Abstract: | The paper adopts a TVP-VAR methodology to investigate the dynamics of inflation components for three countries: the UK, the US and Japan from 1993 to 2023. We deconstruct the CPI into components to examine the actual price changes that make up the CPI and the degree to which changes in those prices influence each other. By doing so, we uncover the connectedness and spillovers between domestic inflation components. We find that whilst connectedness of price changes has been moderate over the last three decades it has increased significantly since the CPI started to soar in late 2021, suggesting the existence of a spillover effect among price-setting firms in the economy. Furthermore, our empirical evidence shows that the transmission mechanism across domestic CPI components varies significantly across countries and over time. From a monetary policy perspective, the findings suggest that a signalling process among consumer market producers complements the signalling by central banks in relation to inflation. Lastly, the cross-country variations over time imply that “no size fits all”, thus emphasizing the importance of domestic spillovers. |
| Keywords: | Consumer Prices, Dynamic Connectedness, Inflation, Monetary policy, Signalling, TVP-VAR |
| JEL: | C81 E31 E52 D43 |
| Date: | 2024–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pbs:ecofin:2024-04&r=cba |
| By: | Nordine Abidi; Mehdi El Herradi; Boriana Yontcheva; Ananta Dua |
| Abstract: | This paper investigates the effects of climate shocks on inflation and monetary policy in the Middle East and Central Asia (ME&CA) region. We first introduce a theoretical model to understand the impact of climate risks on headline and food inflation. In particular, the model shows how climate shocks could affect the path of policy rates through food prices. We then use local projections to estimate the impact of climate shocks on headline and food inflation. The results show that price stability is more easily achievable under positive climate conditions. Overall, our findings shed new light on the importance of considering climate-related supply shocks when designing monetary policy, particularly in countries where food makes up a significant part of the CPI-basket. |
| Keywords: | Monetary policy; inflation; climate change |
| Date: | 2024–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/090&r=cba |
| By: | Carlos Cantú; Rocío Gondo; Berenice Martinez |
| Abstract: | We quantify the trade-offs of using reserve requirements (RR) as a financial stability tool. A tightening in RR reduces the amplitude of the credit cycle. This lowers the frequency and strength of financial stress episodes but at a cost of lower growth in credit and economic activity. We find that the gains from a lower probability and magnitude of financial stress episodes are greater than the costs from the initial reduction in economic activity. In addition, we find that RR have a stronger effect on emerging market economies than in advanced economies, both in terms of costs and benefits. Finally, we find that uniform RR have a stronger effect than RR that differenciate by maturity or currency. |
| Keywords: | reserve requirements, macroprudential policy, financial stress episodes, early-warning system, financial cycle |
| JEL: | E44 E58 F41 G01 G28 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1182&r=cba |
| By: | Joris Wauters (Economics and Research Department, National Bank of Belgium); Zivile Zekaite (Irish Economic Analysis Division, Central Bank of Ireland); Garo Garabedian (Monetary Policy Division, Central Bank of Ireland) |
| Abstract: | The ECB concluded its strategy review in 2021 with a plan to include owner-occupied housing (OOH) costs in its inflation measure in the future. This paper uses the Bundesbank’s online household panel to study how household expectations would react to this change. We conducted a survey experiment with different information treatments and compared long-run expectations for euro area overall inflation, interest rates, and OOH inflation. Long-run expectations are typically higher for OOH inflation than overall inflation, and both are unanchored from the ECB’s target at the time of the survey. We find significantly higher inflation expectations under the treatment where OOH costs are assumed to be fully included in the inflation measure. This information effect is heterogeneous as, among others, homeowners and respondents with low trust in the ECB react more strongly. However, inflation expectations remain stable when information about past OOH inflation is also given. Careful communication design could thus prevent expectations from becoming more de-anchored. |
| Keywords: | Owner-occupied housing costs, survey experiment, inflation measurement, inflation expectations, ECB |
| JEL: | D83 D84 E31 E50 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202405-449&r=cba |
| By: | William Barnett (Department of Economics, University of Kansas and Center for Financial Stability, New York City); Hyun Park (Department of Economics, Valparaiso University, Valparaiso, IN 46383, USA) |
| Abstract: | We use the New-Keynesian DSGE framework and VAR to investigate the usefulness and relevancy of monetary services, augmented to include credit card transaction services. We use the new credit-card-augmented Divisia monetary aggregates in the models to further the existing research on their usefulness and relevancy. In this research, we compare three different monetary aggregates within the New-Keynesian framework: (1) the aggregation theoretic "true" monetary aggregate, (2) the credit-card-augmented Divisia monetary aggregate, and (3) the simple sum monetary aggregate. We acquire the following primary results. (1) The credit-card-augmented Divisia monetary aggregate tracks the theoretical (true) monetary aggregate, while simple-sum does not. Although this result would be expected from the theory in classical economic models, the result is not an immediate implication of the theory in New-Keynesian models and therefore needs empirical confirmation. (2) Under the recursive VAR framework, the credit-card-augmented Divisia monetary aggregate serves as a preferable monetary policy indicator compared to the traditional federal funds rate. (3) On theoretical grounds, we find that the separability condition for existence of a monetary aggregator function could fail, if credit card deferred payment services were excluded from the monetary services block, unless all markets are perfect. |
| Keywords: | Credit-card-augmented Divisia monetary aggregates, New-Keynesian DSGE, credit card services, VAR. |
| JEL: | E12 E41 E51 E52 E58 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:kan:wpaper:202408&r=cba |
| By: | Chris Becker (Reserve Bank of Australia); Anny Francis (Reserve Bank of Australia); Calebe de Roure (Reserve Bank of Australia); Brendan Wilson (Reserve Bank of Australia) |
| Abstract: | In Australia repurchase (repo) obligations are traded bilaterally 'over-the-counter' between parties, rather than on an exchange. As a result, it is difficult to obtain quotes of executable prices, trading volumes, and related data that are representative of the market. Market conditions are therefore not easy to assess and often dependent on anecdotal evidence. Over the years, the Reserve Bank of Australia has published data and analysis of the repo market by providing indirect perspectives using data from its own open market operations that are conducted using repos. This paper contributes to this work. The Reserve Bank conducts open market operations to manage liquidity in the interbank market, provide settlement balances for the smooth functioning of the payments system, and for the implementation of monetary policy. Repos are an integral part of these operations. The eligible private sector counterparties in these auctions have a variety of reasons for participating. We arrange their bids in an ascending order in a number of distinct phases so that they can be used to make inferences about the demand for repo and hence market operations. Several insights allow us to better understand the dynamics underpinning the repo market. The findings mainly relate to the period prior to the implementation of unconventional monetary policies in March 2020. |
| Keywords: | monetary policy; repurchase agreement; liquidity management; open market operations; money market |
| JEL: | E41 E42 E43 E52 E58 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:rba:rbardp:rdp2024-03&r=cba |
| By: | Cappelletti, Giuseppe; Dimitrov, Ivan; Naruševičius, Laurynas; Le Grand, Catherine; Nunes, André; Podlogar, Jure; Röhm, Nicola; Ter Steege, Lucas |
| Abstract: | This paper presents the updated macroprudential stress test for the euro area banking system, comprising around 100 of the largest euro area credit institutions across 19 countries. The approach involves modelling banks’ reactions to changing economic conditions. It also examines the effects of adverse scenarios as defined for the European Banking Authority’s 2023 stress test on economies and the financial system as a whole by acknowledging a broad set of interactions and interdependencies between banks, other market participants and the real economy. Our results highlight the resilience of the euro area banking system and the important role banks’ adjustments play in the propagation of shocks to the financial sector and real economy. JEL Classification: C30, C53, C54, E52 |
| Keywords: | economic models, forecasting, macroeconometrics, monetary policy |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2024347&r=cba |
| By: | Hassan Afrouzi; Alexander Dietrich; Kristian Myrseth; Romanos Priftis; Raphael Schoenle |
| Abstract: | We document novel survey-based facts on preferred long-run inflation rates among U.S. consumers. Consumers on average prefer a 0.20% annual inflation rate, considerably below the Federal Reserve’s 2% target. Inflation preferences not only correlate with demographic and socioeconomic characteristics, but also with economic reasoning. A randomized control trial reveals that two narratives based on economic models—describing how inflation lowers the real value of wages as well as money holdings—affect inflation preferences. While our results can inform the design of central bank communication on inflation targets, they also raise questions about the alignment between such targets and consumer preferences. |
| JEL: | E58 E71 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32379&r=cba |
| By: | Luis Férnandez Lafuerza (Banco de España); Jorge E. Galán (Banco de España) |
| Abstract: | We provide compelling evidence of the association between credit standards at loan origination in the corporate sector and default risk, a topic that has received little attention in the literature in comparison to the study of this relationship in the mortgage market. Using data from the Spanish credit register merged with corporate balance sheet information spanning the last financial cycle, we demonstrate that leverage and debt burden ratios at loan origination are key predictors of future corporate loan defaults. We also show that the deterioration in lending standards is strongly correlated to the build-up of cyclical systemic risk during periods of financial expansions. Specifically, limits on the debt-to-assets ratio and the interest coverage ratio could serve as effective tools to mitigate credit risk during economic expansions. We identify that the strength of these associations varies significantly across different sectors and is dependent on firms’ size, age and the existence of prior relationships with the bank. Real estate firms and small and medium-sized enterprises exhibit the strongest relationship between credit standards and future default. Overall, our findings provide strong support for the effectiveness of macroprudential measures targeting the corporate sector and contribute to providing guidance for the implementation of borrower-based measures in key segments of corporate credit. |
| Keywords: | bank credit, defaults, lending standards, macroprudential policy, non-financial corporations |
| JEL: | C32 E32 E58 G01 G28 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2413&r=cba |
| By: | Frida Adjalala; Felipe Alves; Hélène Desgagnés; Wei Dong; Dmitry Matveev; Laure Simon |
| Abstract: | We assess both the US and Canadian nominal neutral rates to be in the range of 2.25% to 3.25%, somewhat higher than the range of 2.0% to 3.0% in 2023. The assessed range is back to the level it was at in April 2019. |
| Keywords: | Economic models; Interest rates; Monetary policy |
| JEL: | E4 E40 E43 E5 E50 E52 E58 F4 F41 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocsan:24-9&r=cba |
| By: | Menzie D. Chinn; Jeffrey A. Frankel; Hiro Ito |
| Abstract: | We begin by examining determinants of aggregate foreign exchange reserve holdings by central banks (size of issuing country’s economy and financial markets, ability of the currency to hold value, and inertia). But understanding the determination of reserve holdings probably requires going beyond the aggregate numbers, instead observing individual central bank behavior, including characteristics of the holding country (bilateral trade with the issuing country, bilateral currency peg, and proxies for bilateral exposure to sanctions), in addition to the characteristics of the reserve currency issuer. On a currency-by-currency basis, US dollar holdings are somewhat well explained by several issuer characteristics; but the other currencies are less successfully explained. It may be that the results from currency-by-currency estimation are impaired by insufficient sample size. This consideration offers a motivation for pooling the data across the major currencies and imposing the constraints that reserve holdings are determined in the same way for each currency. In this setting, most economic determinants enter with significance: economic size as measured by GDP, size of financial markets as measured by foreign exchange turnover, bilateral currency peg, and bilateral trade share. However, geopolitical variables (bilateral alliance, bilateral sanctions) usually do not enter with significance. |
| JEL: | F33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32387&r=cba |
| By: | Ana Pereira |
| Abstract: | In this study, we assess the effectiveness of structural and cyclical capital requirements under distinct sources of disturbance. The analysis is based on the model of Clerc et al. (2015) with three layers of default (3D model) calibrated for the Portuguese economy. We conclude that an increase in capital requirements, regardless of their structural or cyclical nature, enhances the resilience of the banking sector to adverse shocks and reduces the impact of those disturbances on the well-functioning of the banking sector. Nonetheless, results also indicate that capital requirements can be more effective if the distress emerges from within the financial system, corroborating the idea that prudential policies are not meant to be the first line of defense to address all types of shock. Countercyclical capital buffers also help counter some of the pro-cyclicality in the financial system by smoothing the crunch in credit flows. Structural and cyclical capital instruments can be considered as strategic complements as they reinforce each others’ policy goals. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:w202315&r=cba |
| By: | Hibiki Ichiue (Faculty of Economics, Keio University) |
| Abstract: | The Bank of Japan (BoJ) purchased equity index exchange-traded funds (ETFs), including Nikkei 225 ETFs, for over a decade and has not sold any ETFs it purchased. On March 31, 2021, the BoJ’s ETF holdings were more than 10% of the free float of the First Section of the Tokyo Stock Exchange. Primarily because the Nikkei index is price-weighted, the BoJ’s indirect holdings as a percentage of the market capitalization vary widely among individual stocks. To identify the effects of the uneven demand shocks, this paper runs instrumental-variable cross-sectional regressions of cumulative returns between September 30, 2010, a few days before the first announcement of ETF purchases, and March 31, 2021, when the BoJ terminated Nikkei 225 ETF purchases. The results suggest that the price multiplier is around 6 to 9; a 1 percentage point higher BoJ share in a stock’s market capitalization is associated with a roughly 6 to 9 percentage point higher return. The estimated multiplier is much higher than a typical estimate of 1 based on U.S. data. There is no evidence of a return reversal in the 9 months after Nikkei 225 ETF purchases ended. Various analyses, including monthly return regressions, support the analysis of cumulative returns and provide additional insights. |
| Keywords: | Asset pricing; Unconventional monetary policy; Exchange-traded funds |
| JEL: | E52 E58 G12 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:upd:utmpwp:049&r=cba |
| By: | Gubitz, Andrea; Toedter, Karl-Heinz; Ziebarth, Gerhard |
| Abstract: | Despite the "interest rate turnaround" initiated by the ECB in the second half of 2022 as a late reaction to the clearly underestimated persistence of high inflation rates in the euro area, real interest rates are by no means to be regarded as restrictive, neither in the ex post nor in the ex ante view. However, banks have been quite quick to adopt stricter lending guidelines, and demand in housing construction and mortgage lending has plummeted. Against this background, the paper discusses the importance of cash flow effects in annuity loans and in particular analyses the so-called front-loading effect. Accordingly, even if inflation rates are fully anticipated and real market and lending interest rates remain unchanged, higher nominal rates lead to strong additional financial burdens in the first phases of the typically mortgages with long maturities. Such liquidity effects can severely reduce the ability or willingness to pay of private investors in the household sector. This is particularly true for long-run loans in the form of a percentage annuity, as an additional maturity shortening effect occurs here. These types of fixed term loans are quite popular in Germany. Looking ahead, there is also a real risk to the stock of housing loans if there is a refinancing of the large stock of cheap housing loans, a risk that also has implications for macroeconomic and financial stability. |
| Abstract: | Trotz der von der EZB eingeleiteten "Zinswende" in der zweiten Jahreshälfte 2022 als späte Reaktion auf die deutlich unterschätzte Persistenz hoher Inflationsraten im Euroraum sind die Realzinsen sowohl in der ex post Betrachtung als auch in der ex ante Betrachtung keineswegs als restriktiv einzuschätzen. Die Banken haben allerdings recht rasch strengere Vergaberichtlinien beschlossen, und die Nachfrage im Wohnungsbau und bei den Hypothekarkrediten ist stark eingebrochen. Der Beitrag thematisiert vor diesem Hintergrund die Bedeutung von Zahlungsstromeffekten bei Annuitätenkrediten und analysiert hier vor allem den sog. front-loading Effekt. Danach führen höhere Nominalzinsen selbst bei vollständig antizipierten Inflationsraten und unveränderten Realzinsen zu starken finanziellen Zusatzbelastungen in den ersten Phasen der typischerweise langen Kreditlaufzeit. Derartige Liquiditätseffekte können die Zahlungsfähigkeit bzw. die Zahlungsbereitschaft der privaten Investoren empfindlich verringern. Dies gilt vor allem bei Darlehen in Form der Prozentannuität, da hier zusätzlich ein Laufzeitenverkürzungseffekt auftritt. Solche Darlehen sind in Deutschland recht populär. Mit Blick auf die Zukunft besteht auch eine reale Gefahr für den Bestand an Wohnungsbaukrediten, wenn es zu einer Refinanzierung des großen Bestands an günstigen Wohnungsbaukrediten kommt, ein Risiko, das auch Auswirkungen auf die makroökonomische und finanzielle Stabilität hat. |
| Keywords: | ECB, monetary policy, liquidity effects of interest rate policy, front loading effects, housing finance, mortgage |
| JEL: | G21 G51 E59 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hawdps:294836&r=cba |
| By: | Hetzel, Robert L.; Humphrey, Thomas M.; Tavlas, George S. |
| Abstract: | Carl Snyder was one of the most prominent U.S. monetary economists of the 1920s and 1930s. His pioneering work on constructing the empirical counterparts of the terms in the equation of exchange led him to formulate a four percent monetary growth rule. Snyder is especially apposite because he was on the staff of the New York Federal Reserve Bank. Despite his pioneering empirical work and his position as an insider, why did Snyder fail to effectively challenge the dominant real bills views of the Federal Reserve (Fed)? A short answer is that he did not possess a convincing version of the quantity theory that attributed the Great Depression to a contraction in the money stock produced by the Fed as opposed to the dominant real bills view attributing it to the collapse of speculative excess. |
| Date: | 2024–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:5xqt9&r=cba |