The e-monetary theory
The author develops a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, he assesses the efficacy of unconventional monetary policy since the Great Recession. After...
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De Gruyter
2020-12-01
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| Series: | Economics : the Open-Access, Open-Assessment e-Journal |
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| Online Access: | https://doi.org/10.5018/economics-ejournal.ja.2020-13 |
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doaj-aa4bbed428cc432b8f826884794525ce2021-09-22T06:13:29ZengDe GruyterEconomics : the Open-Access, Open-Assessment e-Journal1864-60422020-12-0114110.5018/economics-ejournal.ja.2020-13The e-monetary theoryNgotran Duong0Department of Business Administration, FPT University, Hanoi, VietnamThe author develops a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, he assesses the efficacy of unconventional monetary policy since the Great Recession. After quantitative easing, keeping the interest on reserves near zero too long might create deflation. The central bank can safely get out of the “low rate-cum-deflation” trap by “raising rate and raising money supply”.https://doi.org/10.5018/economics-ejournal.ja.2020-13interest on reservesquantitative easingunwinding qee-moneyexcess reservesraise rate raise money supplye4e5 |
| collection |
DOAJ |
| language |
English |
| format |
Article |
| sources |
DOAJ |
| author |
Ngotran Duong |
| spellingShingle |
Ngotran Duong The e-monetary theory Economics : the Open-Access, Open-Assessment e-Journal interest on reserves quantitative easing unwinding qe e-money excess reserves raise rate raise money supply e4 e5 |
| author_facet |
Ngotran Duong |
| author_sort |
Ngotran Duong |
| title |
The e-monetary theory |
| title_short |
The e-monetary theory |
| title_full |
The e-monetary theory |
| title_fullStr |
The e-monetary theory |
| title_full_unstemmed |
The e-monetary theory |
| title_sort |
e-monetary theory |
| publisher |
De Gruyter |
| series |
Economics : the Open-Access, Open-Assessment e-Journal |
| issn |
1864-6042 |
| publishDate |
2020-12-01 |
| description |
The author develops a dynamic model with two types of electronic money: reserves for transactions between bankers and zero-maturity deposits for transactions in the non-bank private sector. Using this model, he assesses the efficacy of unconventional monetary policy since the Great Recession. After quantitative easing, keeping the interest on reserves near zero too long might create deflation. The central bank can safely get out of the “low rate-cum-deflation” trap by “raising rate and raising money supply”. |
| topic |
interest on reserves quantitative easing unwinding qe e-money excess reserves raise rate raise money supply e4 e5 |
| url |
https://doi.org/10.5018/economics-ejournal.ja.2020-13 |
| work_keys_str_mv |
AT ngotranduong theemonetarytheory AT ngotranduong emonetarytheory |
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1717371602852642816 |