he IS - LM - BB: A Model For Unconventional Monetary Policy
Journal Title: International Journal of Scientific Research and Management - Year 2016, Vol 4, Issue 11
Abstract
The Monetary policy of the United States has not been the same since the 2008 - 2009 international crisis. Following the crisis, given that the federal funds interest rate - the conventional monetary policy instrument - fell to almost zero, the Federal Reser ve (FED) had to resort to two unconventional instruments: Firstly, an announcement on the future trajectory of the short - term interest rate. Secondly, direct intervention in the long - term bond market. The objective of this article is to extend the IS - LM model devised by Hicks (1937), to incorporate American monetary policy innovations. This updated model, unlike IS - LM, takes into account that the FED administers the short - term interest rate, not monetary supply, which is endogenous. On the other hand, so as to address quantitative easing , a long - term bond market is added to the IS - LM - in which there only exists a short - term bond market - by resorting to Tobin (1981). This article shows that the old models and the old methods remain very useful in dealing with contemporary macroeconomic problems
Authors and Affiliations
Waldo Mendoza Bellido
Keywords
Related Articles
- EP ID EP218513
- DOI -
- Views 55
- Downloads 0
he IS - LM - BB: A Model For Unconventional Monetary Policy
The Monetary policy of the United States has not been the same since the 2008 - 2009 international crisis. Following the crisis, given that the federal funds interest rate - the conventional...
A Review : P roperties and Applications of Different G r a d e s of A ustenitic Sta i nless Ste e ls and the E f f e c t of V a rious F a c tors on the Tensi l e B e h a vior Of These Ste e ls
Stainless ste e ls (SS) a re the most use f ul ca te g o ry in the f a mi l y of steels due to their g re a t p r op e rties like str e n g th, fo r mabili t y , lust r e a nd co r r o sion r e sistan c e e t c . T...
Sopc based convolutinal Encoder and Viterbi Decoder
Convolutional encoding is most important technique in Code Division Multiple Acess(CDMA).CDMA uses convolutional encoder to reduce interference. Convolutional encodeing and viterbi decoding are mos...
Capacity Building Of Dalit Women In Lucknow District : A Case Study In BKT Block
Capacity building often refers to assistance that is provided to entities, usually societies in developing countries, which have a need to develop a certain skill or competence, or for general upgrading of performance ab...
‘ Conservation Management Strategy for Water Resource Sustainability in Campus’
S ustainability as a matter of fact has been an integral part of every step towards development of a town. Historical towns have developed in integration with sustainability when reviewed . Wat...