Exiting from quantitative easing in an era of large government debt: Inflation or default?
Author
Abstract
Suggested Citation
DOI: 10.1016/j.econlet.2023.111471
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Benhabib, Jess & Schmitt-Grohe, Stephanie & Uribe, Martin, 2001.
"The Perils of Taylor Rules,"
Journal of Economic Theory, Elsevier, vol. 96(1-2), pages 40-69, January.
- Benhabib, Jess & Schmitt-Grohe, Stephanie & Uribe, Martin, 1998. "The Perils of Taylor Rules," Working Papers 98-37, C.V. Starr Center for Applied Economics, New York University.
- Jess Benhabib & Stephanie Schmitt-Grohe & Martin Uribe, 1998. "The perils of Taylor Rules," Departmental Working Papers 199831, Rutgers University, Department of Economics.
- Benhabib, Jess & Schmitt-Grohé, Stephanie & Uribe, Martín, 1999. "The Perils of Taylor Rules," CEPR Discussion Papers 2314, C.E.P.R. Discussion Papers.
- Uribe, Martin, 2006.
"A fiscal theory of sovereign risk,"
Journal of Monetary Economics, Elsevier, vol. 53(8), pages 1857-1875, November.
- Martin Uribe, 2002. "A Fiscal Theory of Sovereign Risk," NBER Working Papers 9221, National Bureau of Economic Research, Inc.
- Uribe, Martín, 2002. "A fiscal theory of sovereign risk," Working Paper Series 187, European Central Bank.
- Woodford, Michael, 2001.
"Fiscal Requirements for Price Stability,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(3), pages 669-728, August.
- Michael Woodford, 2001. "Fiscal Requirements for Price Stability," NBER Working Papers 8072, National Bureau of Economic Research, Inc.
- Fujiki, Hiroshi & Tomura, Hajime, 2017.
"Fiscal cost to exit quantitative easing: the case of Japan,"
Japan and the World Economy, Elsevier, vol. 42(C), pages 1-11.
- Hiroshi Fujiki & Hajime Tomura, 2015. "Fiscal Cost to Exit Quantitative Easing: The Case of Japan," Working Papers e099, Tokyo Center for Economic Research.
- Marco Bassetto & Todd Messer, 2013.
"Fiscal Consequences of Paying Interest on Reserves,"
Fiscal Studies, Institute for Fiscal Studies, vol. 34, pages 413-436, December.
- Marco Bassetto & Todd Messer, 2013. "Fiscal consequences of paying interest on reserves," Working Paper Series WP-2013-04, Federal Reserve Bank of Chicago.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Leeper, E.M. & Leith, C., 2016. "Understanding Inflation as a Joint Monetary–Fiscal Phenomenon," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 2305-2415, Elsevier.
- Niwa, Hidekazu, 2024. "A fiscal theory of central bank’s solvency: Perils of the quantitative and qualitative monetary easing," Japan and the World Economy, Elsevier, vol. 70(C).
- repec:ecb:ecbdps:202426 is not listed on IDEAS
- Debrun, Xavier & Masuch, Klaus & Ferrero, Guiseppe & Vansteenkiste, Isabel & Ferdinandusse, Marien & von Thadden, Leopold & Hauptmeier, Sebastian & Alloza, Mario & Derouen, Chloé & Bańkowski, Krzyszto, 2021. "Monetary-fiscal policy interactions in the euro area," Occasional Paper Series 273, European Central Bank.
- Del Negro, Marco & Sims, Christopher A., 2015.
"When does a central bank׳s balance sheet require fiscal support?,"
Journal of Monetary Economics, Elsevier, vol. 73(C), pages 1-19.
- Christopher Sims & Marco Del Negro, 2014. "When does a central bank's balance sheet require fiscal support?," 2014 Meeting Papers 763, Society for Economic Dynamics.
- Marco Del Negro & Christopher A. Sims, 2014. "When does a central bank’s balance sheet require fiscal support?," Staff Reports 701, Federal Reserve Bank of New York.
- Alstadheim Ragna & Henderson Dale W., 2006.
"Price-Level Determinacy, Lower Bounds on the Nominal Interest Rate, and Liquidity Traps,"
The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(1), pages 1-27, November.
- Ragna Alstadheim & Dale W. Henderson, 2004. "Price-level determinacy, lower bounds on the nominal interest rate, and liquidity traps," International Finance Discussion Papers 795, Board of Governors of the Federal Reserve System (U.S.).
- Ragna Alstadheim & Dale Henderson, 2006. "Price-level determinacy, lower bounds on the nominal interest rate, and liquidity traps," Working Paper 2006/03, Norges Bank.
- Daniel, Betty C. & Shiamptanis, Christos, 2012.
"Fiscal risk in a monetary union,"
European Economic Review, Elsevier, vol. 56(6), pages 1289-1309.
- Betty Daniel & Christos Shiamptanis, 2008. "Fiscal Risk in a Monetary Union," Discussion Papers 08-12, University at Albany, SUNY, Department of Economics.
- Campbell Leith & Eric Leeper, 2016.
"Understanding Inflation as a Joint Monetary-Fiscal Phenomenon,"
Working Papers
2016_01, Business School - Economics, University of Glasgow.
- Campbell Leith, 2016. "Understanding Inflation as a Joint Monetary-Fiscal Phenomenon," Working Papers 2016-01, Becker Friedman Institute for Research In Economics.
- Eric M. Leeper & Campbell Leith, 2016. "Understanding Inflation as a Joint Monetary-Fiscal Phenomenon," NBER Working Papers 21867, National Bureau of Economic Research, Inc.
- Piero Ferri & Anna Maria Variato, 2007. "Macro Dynamics in a Model with Uncertainty," Working Papers (-2012) 0704, University of Bergamo, Department of Economics.
- Michael Woodford, 2013.
"Macroeconomic Analysis Without the Rational Expectations Hypothesis,"
Annual Review of Economics, Annual Reviews, vol. 5(1), pages 303-346, May.
- Michael Woodford, 2013. "Macroeconomic Analysis without the Rational Expectations Hypothesis," NBER Working Papers 19368, National Bureau of Economic Research, Inc.
- Giancarlo Corsetti & Bartosz Maćkowiak, 2024.
"Gambling to Preserve Price (and Fiscal) Stability,"
IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 72(1), pages 32-57, March.
- Corsetti, Giancarlo & Mackowiak, Bartosz, 2022. "Gambling to Preserve Price (and Fiscal) Stability," CEPR Discussion Papers 17588, C.E.P.R. Discussion Papers.
- Corsetti, Giancarlo & Maćkowiak, Bartosz, 2023. "Gambling to preserve price (and fiscal) stability," Working Paper Series 2844, European Central Bank.
- Giancarlo Corsetti & Bartosz Maćkowiak, 2023. "Gambling to Preserve Price (and Fiscal) Stability," RSCAS Working Papers 2022/72, European University Institute.
- Barthélemy, Jean & Mengus, Eric & Plantin, Guillaume, 2024.
"The central bank, the treasury, or the market: Which one determines the price level?,"
Journal of Economic Theory, Elsevier, vol. 220(C).
- Mengus, Eric & Barthélemy, Jean & Plantin, Guillaume, 2021. "The Central Bank, the Treasury, or the Market: Which One Determines the Price Level?," CEPR Discussion Papers 16679, C.E.P.R. Discussion Papers.
- Guillaume Plantin & Eric Mengus & Jean Barthelemy, 2022. "The Central Bank, the Treasury, or the Market: Which One Determines the Price Level?," Working Papers hal-03792094, HAL.
- Barthélemy, Jean & Mengus, Eric & Plantin, Guillaume, 2022. "The Central Bank, the Treasury, or the Market: Which One Determines the Price Level?," CEPR Discussion Papers 17407, C.E.P.R. Discussion Papers.
- Jean Barthélemy & Eric Mengus & Guillaume Plantin, 2021. "The Central Bank, the Treasury, or the Market: Which One Determines the Price Level?," Working papers 855, Banque de France.
- Guillaume Plantin & Eric Mengus & Jean Barthelemy, 2022. "The Central Bank, the Treasury, or the Market: Which One Determines the Price Level?," SciencePo Working papers Main hal-03792094, HAL.
- Stephanie Schmitt‐Grohé & Martín Uribe, 2009.
"Liquidity traps with global Taylor Rules,"
International Journal of Economic Theory, The International Society for Economic Theory, vol. 5(1), pages 85-106, March.
- Stephanie Schmitt-Grohe & Martin Uribe, 2000. "Liquidity Traps with Global Taylor Rules," Departmental Working Papers 200014, Rutgers University, Department of Economics.
- Uribe, MartÃn & Schmitt-Grohé, Stephanie, 2001. "Liquidity Traps with Global Taylor Rules," CEPR Discussion Papers 2969, C.E.P.R. Discussion Papers.
- Francesco Bianchi & Leonardo Melosi, 2017.
"Escaping the Great Recession,"
American Economic Review, American Economic Association, vol. 107(4), pages 1030-1058, April.
- Bianchi, Francesco & Melosi, Leonardo, 2013. "Escaping the Great Recession," CEPR Discussion Papers 9643, C.E.P.R. Discussion Papers.
- Francesco Bianchi & Leonardo Melosi, 2014. "Escaping the Great Recession," Working Paper Series WP-2014-17, Federal Reserve Bank of Chicago.
- Francesco Bianchi & Leonardo Melosi, 2016. "Escaping the Great Recession," Working Paper Series WP-2016-16, Federal Reserve Bank of Chicago.
- Francesco Bianchi & Leonardo Melosi, 2014. "Escaping the Great Recession," NBER Working Papers 20238, National Bureau of Economic Research, Inc.
- Francesco Bianchi & Leonardo Melosi, 2013. "Escaping the Great Recession," Working Papers 13-19, Duke University, Department of Economics.
- Leonardo Melosi & Francesco Bianchi, 2015. "Escaping the Great recession," 2015 Meeting Papers 1035, Society for Economic Dynamics.
- Leonardo Melosi & Francesco Bianchi, 2013. "Escaping the Great Recession," 2013 Meeting Papers 203, Society for Economic Dynamics.
- Fernando M. Duarte & Anna Zabai, 2015. "An interest rate rule to uniquely implement the optimal equilibrium in a liquidity trap," Staff Reports 745, Federal Reserve Bank of New York.
- Bianchi, Francesco & Melosi, Leonardo, 2019.
"The dire effects of the lack of monetary and fiscal coordination,"
Journal of Monetary Economics, Elsevier, vol. 104(C), pages 1-22.
- Francesco Bianchi & Leonardo Melosi, 2017. "The Dire Effects of the Lack of Monetary and Fiscal Coordination," Working Paper Series WP-2017-19, Federal Reserve Bank of Chicago.
- Francesco Bianchi & Leonardo Melosi, 2017. "The Dire Effects of the Lack of Monetary and Fiscal Coordination," NBER Working Papers 23605, National Bureau of Economic Research, Inc.
- Bianchi, Francesco & Melosi, Leonardo, 2017. "The Dire Effects of the Lack of Monetary and Fiscal Coordination," CEPR Discussion Papers 12164, C.E.P.R. Discussion Papers.
- Leonardo Melosi & Francesco Bianchi, 2017. "The Dire Effects of the Lack of Monetary and Fiscal Coordination," 2017 Meeting Papers 110, Society for Economic Dynamics.
- Betty C. Daniel, 2010.
"Exchange Rate Crises and Fiscal Solvency,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(6), pages 1109-1135, September.
- Betty C. Daniel, 2010. "Exchange Rate Crises and Fiscal Solvency," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(6), pages 1109-1135, September.
- Betty Daniel, 2008. "Exchange Rate Crises and Fiscal Solvency," Discussion Papers 08-09, University at Albany, SUNY, Department of Economics.
- McCallum, Bennett T., 2003.
"Multiple-solution indeterminacies in monetary policy analysis,"
Journal of Monetary Economics, Elsevier, vol. 50(5), pages 1153-1175, July.
- Bennett McCallum, "undated". "Multiple-Solution Indeterminacies in Monetary Policy Analysis," GSIA Working Papers 2003-E77, Carnegie Mellon University, Tepper School of Business.
- Bennett T. McCallum, 2003. "Multiple-Solution Indeterminacies in Monetary Policy Analysis," NBER Working Papers 9837, National Bureau of Economic Research, Inc.
- Ramiro Sosa Navarro, 2010.
"Fiscal Imbalances, Inflation and Sovereign Default Dynamics,"
Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 1(4), pages 108-142, Octubre.
- Guillard, Michel & Sosa Navarro, Ramiro, 2009. "Fiscal Imbalances, Inflation and Sovereign Default Dynamics," MPRA Paper 24075, University Library of Munich, Germany.
- Ricardo Reis, 2017.
"QE in the Future: The Central Bank’s Balance Sheet in a Fiscal Crisis,"
IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 65(1), pages 71-112, April.
- Ricardo Reis, 2016. "QE in the future: the central bank’s balance sheet in a fiscal crisis," NBER Working Papers 22415, National Bureau of Economic Research, Inc.
- Reis, Ricardo, 2016. "QE in the future: the central bank's balancesheet in a fiscal crisis," LSE Research Online Documents on Economics 67210, London School of Economics and Political Science, LSE Library.
- Reis, Ricardo, 2017. "QE in the future: the central bank’s balance sheet in a fiscal crisis," LSE Research Online Documents on Economics 74329, London School of Economics and Political Science, LSE Library.
- James B. Bullard, 2013.
"Seven Faces of \\"The Peril\\","
Review, Federal Reserve Bank of St. Louis, issue Nov, pages 613-628.
- James B. Bullard, 2010. "Seven faces of \\"the peril\\"," Review, Federal Reserve Bank of St. Louis, vol. 92(Sep), pages 339-352.
More about this item
Keywords
Central bank's solvency; Fiscal theory of the price level; Quantitative easing; Sovereign default;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolet:v:234:y:2024:i:c:s0165176523004974. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolet .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.