Monetary Base Controllability after an Exit from Quantitative Easing
This study examines the problem that a central bank may face after exiting a monetary quantitative easing policy. It develops a simple dynamic optimization model of a central bank, which finds that if the bank needs to absorb a substantial amount of excess reserves when exiting, the monetary base ma...
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| Format: | Article |
| Language: | English |
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Sciendo
2020-09-01
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| Series: | Journal of Central Banking Theory and Practice |
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| Online Access: | https://doi.org/10.2478/jcbtp-2020-0040 |