Substitutability between Balance Sheet Reductions and Policy Rate Hikes: Some Illustrations and a Discussion

Edmund Crawley · Etienne Gagnon · James Hebden · James Trevino

32 citations0/0 files storedFEDS Notes

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Monetary Policy and Economic Impact Banking stability, regulation, efficiency Economic theories and models

Abstract

This note explores the substitutability between policy rate hikes and reductions in the size of the Federal Reserve's balance sheet for the removal of policy accommodation. We do so using a version of the FRB/US model augmented to incorporate the effects of changes in the Federal Reserve's asset holdings on term premiums.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 32 citations exist upstream.

References

2004Tobin's Imperfect Asset Substitution in Optimizing General Equilibrium 2004Estimating the Euler equation for output 2012The Aggregate Demand Effects of Short- and Long-Term Interest Rates 2016Expectation and Duration at the Effective Lower Bound 2016Quantitative Easing: An Underappreciated Success 2021The Financial Market Effects of Unwinding the Federal Reserve’s Balance Sheet

Cited by

2024Macro and micro of external finance premium and monetary policy transmission

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.