Central banks quasi-fiscal policies and inflation /

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Bibliographic Details
Author / Creator:	Park, Seok Gil, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, ©2012.
Description:	1 online resource (35 pages)
Language:	English
Series:	IMF working paper ; WP/12/14 IMF working paper ; WP/12/14.
Subject:	Banks and banking, Central -- Econometric models. Fiscal policy -- Econometric models. Monetary policy -- Econometric models. Banks and banking, Central -- Econometric models. Fiscal policy -- Econometric models. Monetary policy -- Econometric models. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12499965

Hidden Bibliographic Details
Other authors / contributors:	International Monetary Fund. Fiscal Affairs Department, issuing body.
Notes:	At head of title: Fiscal Affairs Department. Title from PDF title page (IMF Web site, viewed January 19, 2012). "January 2012." Includes bibliographical references.
Summary:	Although central banks have recently taken unconventional policy actions to try to shore up macroeconomic and financial stability, little theory is available to assess the consequences of such measures. This paper offers a theoretical model with which such policies can be analyzed. In particular, the paper shows that in the absence of the fiscal authorities' full backing of the central bank's balance sheet, strange things can happen. For instance, an exit from quantitative easing could be inflationary and central banks cannot successfully unwind inflated balance sheets. Therefore, the fiscal authorities' full backing of the monetary authorities' quasi-fiscal operations is a pre-condition for effective monetary policy.

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