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Exiting low interest rates in a situation of excess liquidity: the experience of the Fed

Author

Listed:
  • V. Grossmann-Wirth
  • M. Vari

Abstract

The Federal funds rate increase decided at end-2015 is one of the first experiences of monetary policy tightening in a situation of excess liquidity. It required a change in the Fed’s instruments but confirms the ability of central banks to control interest rates in a context of abundant liquidity.

Suggested Citation

  • V. Grossmann-Wirth & M. Vari, 2016. "Exiting low interest rates in a situation of excess liquidity: the experience of the Fed," Quarterly selection of articles - Bulletin de la Banque de France, Banque de France, issue 43, pages 5-14, Autumn.
    • Handle: RePEc:bfr:quarte:2016:43:01
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    References listed on IDEAS

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    Cited by:

    1. Stefan Angrick & Naoko Nemoto, 2017. "Central banking below zero: the implementation of negative interest rates in Europe and Japan," Asia Europe Journal, Springer, vol. 15(4), pages 417-443, December.
    2. Angrick, Stefan & Nemoto, Naoko, 2017. "Central Banking below Zero: The Implementation of Negative Interest Rate Policies in Europe and Japan," ADBI Working Papers 740, Asian Development Bank Institute.

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    More about this item

    Keywords

    monetary policy; Fed; Eurosystem; liquidity;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G01 - Financial Economics - - General - - - Financial Crises

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