中国经济与管理研究院本学期第二次研讨会将于9月12日（周三）中午11:30-1:00在712会议室举行，由我院戴田甜助理教授报告论文“Financial Frictions, Liquidity Traps, and the Implementation of Monetary Policy”，欢迎感兴趣的师生参加。
【Titile】: Financial Frictions, Liquidity Traps, and the Implementation of Monetary Policy
【Abstract】: This paper studies how financial frictions affect three different implementation instruments of monetary policy: open market operations (OMO), standing facilities (SF), and lump-sum transfers (LST). We show that without financial frictions, the three instruments are equivalent, provided that they can achieve the same money growth rate. SF and OMO can be used either conservatively (central bank intervention size is a constant fraction of the money supply) or aggressively. With financial frictions, which instrument and how we use it matters. For example, to escape the liquidity trap, the central bank should inject more money if LST is available but reduce lending or purchase of bonds under OMO or SF. SF and OMO, used aggressively, can lead the economy into the liquidity trap endogenously over time. Lending via SF is preferable to a similar OMO intervention. The relationship between the money growth rate and welfare is not simple and depends on the instrument and even the intervention size.