Liquidity, Monetary Policy and Unemployment: A New Monetarist Approach

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aut.researcherXiao, Xiaolin
dc.contributor.authorXiao, Xen_NZ
dc.contributor.authorDong, Men_NZ
dc.date.accessioned2017-09-21T22:57:30Z
dc.date.available2017-09-21T22:57:30Z
dc.date.copyright2017-09-21en_NZ
dc.date.issued2017-09-21en_NZ
dc.description.abstractWe discover a consumption channel of monetary policy in a model with money and government bonds. When the central bank withdraws government bonds (short-term or long-term) through open market operations, it lowers returns on bonds. The lower return has a direct negative impact on consumption by households that hold bonds, and an indirect negative impact on consumption by households that hold money. As a result, Örms earn less proÖts from production, which leads to higher unemployment. The existence of such a consumption channel can help us understand the e§ects of unconventional monetary policy.
dc.identifier.citationEconomic Working Paper Series. Retrieved from http://www.aut.ac.nz/__data/assets/pdf_file/0008/754514/Economics-WP-2017-07.pdf
dc.identifier.urihttps://hdl.handle.net/10292/10819
dc.publisherAUT School of Economics, AUT University
dc.relation.ispartofseriesSchool of Economics Working Paper Seriesen_NZ
dc.relation.urihttp://www.aut.ac.nz/__data/assets/pdf_file/0008/754514/Economics-WP-2017-07.pdfen_NZ
dc.rightsAuckland University of Technology (AUT) encourages public access to AUT information and supports the legal use of copyright material in accordance with the Copyright Act 1994 (the Act) and the Privacy Act 1993. Unless otherwise stated, copyright material contained on this site may be in the intellectual property of AUT, a member of staff or third parties. Any commercial exploitation of this material is expressly prohibited without the written permission of the owner.
dc.rights.accessrightsOpenAccessen_NZ
dc.subjectInterest rate; Monetary policy; Consumption; unemployment
dc.titleLiquidity, Monetary Policy and Unemployment: A New Monetarist Approachen_NZ
pubs.elements-id312409
pubs.organisational-data/AUT
pubs.organisational-data/AUT/Faculty of Business, Economics and Law
pubs.organisational-data/AUT/Faculty of Business, Economics and Law/School of Economics
pubs.organisational-data/AUT/PBRF
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/Faculty Review Team PBRF 2018
pubs.organisational-data/AUT/PBRF/PBRF Business Economics and Law/School of Economics PBRF 2018
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