Global liquidity and strategies of exit from unconventional monetary policies
Journal Title: Economic Research-Ekonomska Istraživanja - Year 2016, Vol 29, Issue 1
Abstract
We develop some main characteristics of a roadmap of how the European Central Bank (ECB) should further reduce the volume of its balance sheets and roll back credit easing in order to prevent inflation. The exit should be step-by-step rather than a one-off. Communicating about the exit strategy must be an integral part of the strategy. Price stability should take precedence in all decisions. Due to vagabonding global liquidity, there is a strong case for globally coordinating monetary exit strategies. Given non-surmountable practical problems of coordinating exit with asymmetric country interests, however, the ECB should go ahead – perhaps jointly with some Far Eastern economies. Coordination of monetary and fiscal exit would potentially undermine ECB independence and is also technically out of reach within the euro area.
Authors and Affiliations
Ansgar Belke
Keywords
Related Articles
- EP ID EP201687
- DOI 10.1080/1331677X.2016.1168039
- Views 64
- Downloads 0
Child domestic labour and mothers’employment in Turkey
This paper takes an initial step in studying the determinants of child domestic labour and its relationship with mothers’ employment in Turkey. We focus on children that are responsible for performing the domestic chores...
Factors affecting men’s and women’s earnings in Poland
The situation of women in the labour market is subject to European Union policy. This is due to prevention of discrimination and promotion of sustainable growth and development. There is a large body of literature descri...
Constructing a composite coincident indicator for a post-transition country
The aim of this article is to construct a monthly coincident indicator of real economic activity in Croatia. For that purpose, we use a database containing altogether 278 time series, ranging from January 1998 to Decem...
Global liquidity and strategies of exit from unconventional monetary policies
We develop some main characteristics of a roadmap of how the European Central Bank (ECB) should further reduce the volume of its balance sheets and roll back credit easing in order to prevent inflation. The exit should...
Assessing the accuracy of delta-normal VaR evaluation for Serbian government bond portfolio
Interest rate risk is immanent to all sorts of bonds with a fixed interest rate and has a major impact on the value of the bond. The aim of this article is to evaluate this risk over a period of five years (2008–2012), a...