Default and determinacy under quantitative easing
研究发现，在存在违约的情况下，以利率为目标的量化宽松政策能够决定通货膨胀的路径。通过有抵押的违约债券在不同自然状态下的不同收益，模型实现了价格和通货膨胀的确定性，这对理解欧洲央行近年来的量化宽松操作有参考价值。
Abstract We show that the path of inflation under quantitative easing policies that target interest rates, is determinate in the presence of default. We achieve this through different payoff profiles that a collateralised defaultable bond achieves in different states of nature with distinct default outcomes. In the model, heterogeneous households trade this bond and other shorter maturity risk-free bonds to maximize their intertemporal utility of consumption and labour. The differentiated payoffs of the collateralised bond, in an equilibrium with active default, span the full state space giving determinacy of prices and inflation as an outcome. This, implies that quantitative easing as implemented by the ECB in the recent years, can control the stochastic path of inflation.