The Political Benefits of ‘Unconventional’ Monetary Policies in Times of Crisis

Rossi, Sergio

doi:10.1080/09538259.2022.2114290

Cited by 5 publications

(2 citation statements)

References 35 publications

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“…While the purpose may have been to inject liquidity into the banking system, they had quite unfortunate consequences. Indeed, as Rossi (2023) suggests, there were clear political advantages to these unconventional policies that benefited some more than others. This highlights the income distributive nature of monetary policy, both in normal times and in times of crises.…”

Section: The Monetary Policy Responsementioning

confidence: 99%

Series editors' introduction: COVID, policy and the state of our institutions

Rochon¹,

Kappes²,

Vallet³

2023

COVID-19 and the Response of Central Banks

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Section: The Monetary Policy Responsementioning

confidence: 99%

Series editors' introduction: COVID, policy and the state of our institutions

Rochon¹,

Kappes²,

Vallet³

2023

COVID-19 and the Response of Central Banks

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“…Hence, these households can increase their consumption expenditures, often also as a result of their borrowing from the banking sector, even though this remains to be seen in a period of high uncertainty and lack of confidence in the future as a result of the pandemic crisis that burst in 2020 at the global level. Another way for wealthy households to benefit from an increase in their wealth as a result of central banks' policies is to purchase real-estate objects as an income-generating activity for them, mainly through the granting of mortgage loans at lower rates of interest owing to an expansionary monetary policy stance (see Rossi, 2022b).…”

Section: The Distributive Impact Of Central Banks' Interventionsmentioning

confidence: 99%

Monetary Policy and Income Distribution in the Covid-19 Pandemic Crisis. A European Perspective

Rossi

2022

Investigación Económica

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ABSTRACTThis paper focuses on central banks’ interventions during the COVID-19 pandemic crisis and their impacts on income distribution across Europe, particularly as regards Switzerland and the euro area. The first section offers a survey of the monetary policy tools that have been put into practice to deal with the macroeconomic shock resulting from this pandemic. The second section points out the impact of central banks’ interventions on the whole economic system, before elaborating on the distributive effects of them. The third section suggests an alternative monetary policy stance to reduce the latter effects and to enhance sustainable development for the common good. POLÍTICA MONETARIA Y DISTRIBUCIÓN DEL INGRESO EN LA CRISIS DE LA PANDEMIA COVID-19: UNA PERSPECTIVA EUROPEARESUMENEl presente artículo analiza las intervenciones de los bancos centrales durante la crisis de la pandemia COVID-19 y sus impactos en la distribución del ingreso en Europa, en particular en lo que concierne a Suiza y el área del euro. Después de la introducción, la segunda parte ofrece una revisión de los instrumentos de política monetaria puestos en práctica para confrontar el choque resultante de esta pandemia. La tercera parte enfatiza el impacto de las intervenciones de los bancos centrales en todo el sistema económico, previo al escrutinio de sus efectos distributivos, y la cuarta sugiere un enfoque alternativo de política monetaria para atenuar estos efectos y para mejorar el desarrollo sustentable de los bienes comunes.

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Ecological transition in a monetary economy of production: a heterodox approach

Solari,

Le Bloc’h,

Rossi

2024

Eurasian Econ Rev

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The global warming challenge is probably the major issue of our epoch, calling for a concerted response involving as many entities as possible. The economic system being the main responsible of this troubling situation, it is logical to address it first. The actual monetary economy of production has the banking system as the main driver of its functioning which justifies putting our attention on it. Central banks play a prominent role in such a system. They thus dispose of a relevant room for maneuver, which constitutes one of the main topics addressed here. Before that, this article discusses environmental concerns in a monetary production economy, advocating for an ecological economics approach as our privileged analytical foundation and highlighting the seminal role of the banking system in the monetary essence of our economic system, thus calling for an effort to enrich current monetary policy practices which must depart from the myth of ‘market neutrality’. We therefore propose four axes of intervention with regard to the greening of central banks’ action, which aim at redirecting credit away from carbon-intensive activities and towards low-carbon economic sectors. As needed as it is, adjusting monetary policy would however not suffice, the actual climate crisis being enrooted within the economic growth mantra applied through a profit-seeking scheme. A questioning of the very basis of our economic system is thus required to make the economy sustainable and finally safeguarding the conditions of life on earth.

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The Political Benefits of ‘Unconventional’ Monetary Policies in Times of Crisis

Cited by 5 publications

References 35 publications

Series editors' introduction: COVID, policy and the state of our institutions

Series editors' introduction: COVID, policy and the state of our institutions

Monetary Policy and Income Distribution in the Covid-19 Pandemic Crisis. A European Perspective

Ecological transition in a monetary economy of production: a heterodox approach

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