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1 février 2019
- handle: 10670/1.iosh9b
- hal: hal-03393106
- SCIENCESPO: 2441/7dgqij8a2d89s9v4v2v5qhs9vs
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info:eu-repo/semantics/altIdentifier/hdl/2441/7dgqij8a2d89s9v4v2v5qhs9vs
info:eu-repo/semantics/OpenAccess
Mots-clés
Monetary policy Financial stability Shadow banking Carry trades Monetary policy E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E52 - Monetary Policy E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E58 - Central Banks and Their Policies G - Financial Economics/G.G0 - General/G.G0.G01 - Financial Crises G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G23 - Non-bank Financial Institutions • Financial Instruments • Institutional Investors G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G28 - Government Policy and RegulationSujets proches
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Viral Acharya et al., « Monetary Easing, Investment and Financial Instability », Archive ouverte de Sciences Po (SPIRE), ID : 10670/1.iosh9b
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Résumé
This paper studies a model of the interest-rate channel of monetary policy in which a low policy rate lowers the cost of capital for firms thereby spurring investment, but also induces destabilizing “carry trades” against their assets. If the public sector does not have sufficient fiscal capacity to cope with the large resulting private borrowing, then carry trades and productive investment compete for scarce funds, and so the former crowd out the latter. Below an endogenous lower bound, monetary easing generates only limited investment at the cost of large and socially wasteful financial risk taking.