Quantitative Easing and Interest on Reserves: How Significant is it?

8 Pages Posted: 23 Feb 2013

See all articles by Kostas Kalevras

Kostas Kalevras

Athens University of Economics and Business, Department of Economics, Students

Date Written: February 21, 2013

Abstract

This essay examines unconventional monetary policy with a view on payment of Interest On Excess Reserves (IOER) and how it is important in order to achieve the central bank targets.

It starts by describing conventional monetary policy followed by an examination of modern monetary regimes which implement a corridor system in order to target interest rates. QE is introduced and advantages and disadvantages of IOER are outlined in detail.

Keywords: Interest on Reserves, Quantitative Easing, Corridor System

Suggested Citation

Kalevras, Kostas, Quantitative Easing and Interest on Reserves: How Significant is it? (February 21, 2013). Available at SSRN: https://ssrn.com/abstract=2222095 or http://dx.doi.org/10.2139/ssrn.2222095

Kostas Kalevras (Contact Author)

Athens University of Economics and Business, Department of Economics, Students ( email )

Athens
Greece

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