International Monetary Fund

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'Low for Long' and risk-taking

Departmental paper No. 2020/25

Format:
Corporate Author:
International Monetary Fund Monetary and Capital Markets Department
Author:
Tobias Adrian
Publisher:
IMF

The COVID-19 pandemic is causing an unprecedented worldwide economic contraction, leading central banks to reduce interest rates to historically low levels and making unconventional monetary policies, including 'low for long' interest rates and asset purchases, increasingly common. Arguably, however, the policies implemented are efficient because they encourage increased risk-taking, and they may have, if unintentionally, increase medium- and long-run macro-financial vulnerabilities. This paper argues that the resulting trade-offs need to be carefully accounted for in monetary policy models and outlines how that can be achieved in practice

Extent vii, 28p. ISBN 9781513556062
Size N/A Price £23.95
Format Paperback Published 24 Nov 2020
Availability Out of stock - available to order Delivery Delivery options and charges