Monetary policy implementation: Which “new normal”?
建立了一个简单的货币政策实施模型，分析利率引导和量化宽松政策，发现“地板系统”优于传统“走廊系统”，因为它赋予央行更多自由度并增强利率控制能力，欧元区货币市场数据支持这一结论。
This article provides a simple model of monetary policy implementation, analyzing both the interest rate steering (IRS) and the quantitative easing (QE) policies. The model shows that the “floor system”, introduced with QE policies, is preferable to the traditional “corridor system”, for two reasons. First, it endows central banks with one more degree of freedom, since the interest rate and the balance sheet policies become two independent instruments. Second, it enhances the ability of central banks to keep the money market rates in line with their target level. This second prediction is confirmed by an empirical analysis of the money market in the euro area. Therefore, in the “new normal” monetary policy should be implemented by steering the level of interest rates within a floor system, instead of relying on the corridor system used in the old IRS framework.1