Interest Rates, Prices and Liquidity: Lessons from the Financial Crisis (Macroeconomic Policy Making)

ISBN 10: 1107014735 / ISBN 13: 9781107014732

Published by Cambridge University Press, 2011

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Seller Inventory # ERICA78711070147356

Bibliographic Details

• Title: Interest Rates, Prices and Liquidity: Lessons from the Financial Crisis (Macroeconomic Policy Making)
• Publisher: Cambridge University Press
• Publication Date: 2011
• Language: English
• ISBN 10: 1107014735
• ISBN 13: 9781107014732
• Binding: Hardcover
• Condition: Like New
• Book Type: book

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Synopsis

Many of the assumptions that underpin mainstream macroeconomic models have been challenged as a result of the traumatic events of the recent financial crisis. Thus, until recently, it was widely agreed that although the stock of money had a role to play, in practice it could be ignored as long as we used short-term nominal interest rates as the instrument of policy because money and other credit markets would clear at the given policy rate. However, very early on in the financial crisis interest rates effectively hit zero percent and so central banks had to resort to a wholly new set of largely untested instruments to restore order, including quantitative easing and the purchase of toxic financial assets. This book brings together contributions from economists working in academia, financial markets and central banks to assess the effectiveness of these policy instruments and explore what lessons have so far been learned.

About the Authors

Jagjit S. Chadha is Professor of Economics, University of Kent.

Sean Holly is Professional Fellow at Fitzwilliam College and Director of Research at the Faculty of Economics, University of Cambridge.