RESEARCH ON THE MACRO NET FINANCIAL ASSETS VALUE EFFECT OF MONETARY POLICY

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F47813059%3A19520%2F22%3AA0000343" target="_blank" >RIV/47813059:19520/22:A0000343 - isvavai.cz</a>

Result on the web

<a href="https://dspace.tul.cz/bitstream/handle/15240/163521/EM_1_2022_10.pdf?sequence=1&isAllowed=y" target="_blank" >https://dspace.tul.cz/bitstream/handle/15240/163521/EM_1_2022_10.pdf?sequence=1&isAllowed=y</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2022-1-010" target="_blank" >10.15240/tul/001/2022-1-010</a>

Result language

angličtina

Original language name

RESEARCH ON THE MACRO NET FINANCIAL ASSETS VALUE EFFECT OF MONETARY POLICY

Original language description

This paper focuses on the impact of Chinese and US monetary policy on the net financial assets value of macro balance sheet from both theoretical and empirical aspects and reveals the sectoral solvency risk conduction path based on the balance sheet channel. In addition, the paper is focused on the effects of the interest rate as a target tool for monetary policy on the macro net financial assets. In the theoretical analysis, the net present value model of the economy is constructed, and a general equilibrium model representing the relationship between the real interest rate and net asset value of five sectors is derived (government, financial, resident, enterprise and central bank sector). This model explains the basic principle how interest rates affect net financial assets values. The dataset includes the central bank, commercial banks and shadow banks, and the stock and equity liabilities of the debtor are taken as the net asset of financial institutions during the period 2000–2016. The empirical results show that an increase in the real deposit interest rate improves the net financial assets value of the four sectors, and an increase in the real loan interest rate reduces the net financial assets value of the four sectors, while the effect of the real loan interest rate is greater than the real deposit interest rate. The effect ranking of interest rates on the four sectors is financial, enterprise, government, and resident sector. Overall, loose monetary policies can reduce macro-financial risks through the balance sheet channel, while the negative effects of long-term low-interest policies should be prevented; the macro-policies should hedge sectoral risks triggered by the exit of the easing policy via the macro balance sheet channel.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

E+M Ekonomie a Management

ISSN

1212-3609

e-ISSN

2336-5064

Volume of the periodical

25

Issue of the periodical within the volume

1

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

16

Pages from-to

161-176

UT code for WoS article

000782805800009

EID of the result in the Scopus database

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