Belke, Ansgar; Schnabl, Gunther:

Finanzkrise, globale Liquidität und makroökonomischer Exit

In: Wirtschaftswissenschaftliche Fakultät der Universität Leipzig, Working Paper, (2010) ; Nr. 92, S. 1-27
ISSN: 1437-9384
Zeitschriftenaufsatz / Fach: Wirtschaftswissenschaften
Fakultät für Wirtschaftswissenschaften » Fachgebiet Volkswirtschaftslehre » Makroökonomik
A series of crisis and emergency interest rate cuts has brought global interest rates towards
zero and government debt to historical records. The paper discusses the exit options from
unconventional monetary policies and unsustainable government debt. First, the paper sheds
light on the probability of a coordinated monetary policy exit between the US and the euro
area. Second, it discusses the options for a coordination of the supranational monetary policy
with national fiscal policies in the European Monetary Union. Third, it analyses the fiscal
activities of the European Central Bank in the context of sterilized outright government bond
purchases. The paper concludes that – due to the complexity of the coordination task – the
coordination of the non-exit is more likely than the coordination of the exit.