Global Spillover Effects from Unconventional Monetary Policy During the Crisis
| Thesis title in Czech: | |
|---|---|
| Thesis title in English: | Global Spillover Effects from Unconventional Monetary Policy During the Crisis |
| Key words: | Zero Lower Bound, Unconventional Monetary Policy, International Spillovers, Global VAR, GVAR. |
| English key words: | Zero Lower Bound, Unconventional Monetary Policy, International Spillovers, Global VAR, GVAR. |
| Academic year of topic announcement: | 2013/2014 |
| Thesis type: | diploma thesis |
| Thesis language: | angličtina |
| Department: | Institute of Economic Studies (23-IES) |
| Supervisor: | PhDr. Jaromír Baxa, Ph.D. |
| Author: | hidden - assigned by the advisor |
| Date of registration: | 14.06.2014 |
| Date of assignment: | 14.06.2014 |
| Date and time of defence: | 23.09.2015 00:00 |
| Venue of defence: | IES |
| Date of electronic submission: | 28.07.2015 |
| Date of proceeded defence: | 23.09.2015 |
| Opponents: | doc. Ing. Pavel Mertlík, CSc. |
| URKUND check: | |
| Guidelines |
| The financial crisis of 2007-2009 strengthened the reality of spillover effects from US to the rest of the world. The Federal Reserve, as well as other major Central Banks like Bank of England, European Central Bank and Bank of Japan, adopted conventional and unconventional expansionary monetary policies to stimulate the economy during the financial turmoil.
Even though the measures taken by advanced economies were globally supported, there is an intense focus on the spillover effects to the rest of the countries. Monetary policy like Quantitative Easing can have over unintended consequences (IMF, July 2011). Policy makers have pointed out that UMP have created excessive global liquidity and caused an acceleration of capital flows to emerging markets. In turn, this capital flow surge is widely blamed for appreciation pressures on emerging markets currencies and a build-up of financial imbalances in emerging markets (Fratzscher, Lo Duca, & Straub, June 2013). Retaining such measures for too long can have adverse implications for the functioning of financial markets and inflation. Thus, as financial markets continue to move towards normalization and the economic recovery takes hold, central banks must exit from many of the crisis-driven measures by reducing their intervention in financial markets (Minegishi & B., 2010). |
| References |
| Bayoumi, T., & Vitek, F. (2013). Macroeconomic Model Spillovers and Their Discontent. IMF Working Paper 13/4.
Borio, C. (2011). Central banking post-crisis:What compass for uncharted waters? BIS Working Papers No 353. Filardo, A., & Hofmann, B. (2014). Forward guidance at the zero lower bound. BIS Quarterly Review. Fratzscher, M., Lo Duca, M., & Straub, R. (2013). On the International Spillovers of US Quantitative Easing. Working Ppaer Series No 1557. European Central Bank. International Monetary Fund. (2013). 2013 Spillover Report - Analytical Underpinnings and Other Background. IMF Policy Paper. International Monetary Fund. (2013). Global Impact and Challlenges of Unconventional Monetary Policies. IMF Policy Paper. Rawdanowicz, Ł. e. (2014). Spillover Effects from Exiting Highly Expansionary Monetary Policies. OECD Economics Department Working Papers. No. 1116, OECD Publishing. http://dx.doi.org/10.1787/5jz417mb6dzp-en. |
| Preliminary scope of work |
| Are there spillover effects from UMP of major Central Banks to Latin-American countries?
What are the transmission channels of the real spillover effects from UMP? How did UMP from major central banks affect the Latin-American countries? |