00000nam 2200000zi 4500 9.894143 CaOODSP 20221107173642 m o d f cr cn||||||||| 201130t20202020onca ob f000 0 eng d CaOODSP eng rda CaOODSP y1y1 FB3-5/2020-49E-PDF Kabaca, Serdar, author. Optimal quantitative easing in a monetary union / by Serdar Kabaca, Renske Maas, Kostas Mavromatis and Romanos Priftis. Ottawa, Ontario, Canada : Bank of Canada = Banque du Canada, 2020. ©2020 1 online resource (ii, 74 pages) : colour illustrations. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2020-49 "Last updated: November 24, 2020." Includes bibliographical references (pages 44-47). "This paper explores the optimal allocation of government bond purchases within a monetary union, using a two-region DSGE model, where regions are asymmetric with respect to economic size and portfolio characteristics: the extent of substitutability between assets of different maturity and origin, asset home bias, and steady-state levels of government debt. An optimal quantitative easing (QE) policy under commitment does not only reflect different region sizes but is also a function of these dimensions of portfolio heterogeneity. By calibrating the model to the euro area, we show that optimal QE favors purchases from the smaller region (Periphery instead of Core), given that the former faces stronger portfolio frictions. A fully optimal policy consisting of both the short-term interest rate and QE lifts the monetary union away from the zero lower bound faster than an optimal interest rate policy alone, which entails forward guidance"--Abstract, page ii. Quantitative easing (Monetary policy) Econometric models. Monetary unions Econometric models. Government securities Econometric models. Assouplissement quantitatif (Politique monétaire) Modèles économétriques. Unions monétaires Modèles économétriques. Effets publics Modèles économétriques. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 2020-49. (CaOODSP)9.806221 PDF 1.00 MB https://publications.gc.ca/collections/collection_2020/banque-bank-canada/FB3-5-2020-49-eng.pdf