Cargando…

Wall Street QE vs. Main Street Lending()

Monetary and fiscal authorities reacted swiftly to the COVID-19 pandemic by purchasing assets (or “Wall Street QE”) and lending directly to non-financial firms (or “Main Street Lending”). Our paper develops a new framework to compare and contrast these different policies. For the Great Recession, ch...

Descripción completa

Detalles Bibliográficos
Autores principales: Cardamone, Dario, Sims, Eric, Wu, Jing Cynthia
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Elsevier B.V. 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10193827/
https://www.ncbi.nlm.nih.gov/pubmed/37265688
http://dx.doi.org/10.1016/j.euroecorev.2023.104475
_version_ 1785043895475765248
author Cardamone, Dario
Sims, Eric
Wu, Jing Cynthia
author_facet Cardamone, Dario
Sims, Eric
Wu, Jing Cynthia
author_sort Cardamone, Dario
collection PubMed
description Monetary and fiscal authorities reacted swiftly to the COVID-19 pandemic by purchasing assets (or “Wall Street QE”) and lending directly to non-financial firms (or “Main Street Lending”). Our paper develops a new framework to compare and contrast these different policies. For the Great Recession, characterized by impaired balance sheets of financial intermediaries, Main Street Lending and Wall Street QE are perfect substitutes and both stimulate aggregate demand. In contrast, for the COVID-19 recession, where non-financial firms faced significant cash flow shortages, Wall Street QE is almost completely ineffective, whereas Main Street Lending can be highly stimulative.
format Online
Article
Text
id pubmed-10193827
institution National Center for Biotechnology Information
language English
publishDate 2023
publisher Elsevier B.V.
record_format MEDLINE/PubMed
spelling pubmed-101938272023-05-19 Wall Street QE vs. Main Street Lending() Cardamone, Dario Sims, Eric Wu, Jing Cynthia Eur Econ Rev Article Monetary and fiscal authorities reacted swiftly to the COVID-19 pandemic by purchasing assets (or “Wall Street QE”) and lending directly to non-financial firms (or “Main Street Lending”). Our paper develops a new framework to compare and contrast these different policies. For the Great Recession, characterized by impaired balance sheets of financial intermediaries, Main Street Lending and Wall Street QE are perfect substitutes and both stimulate aggregate demand. In contrast, for the COVID-19 recession, where non-financial firms faced significant cash flow shortages, Wall Street QE is almost completely ineffective, whereas Main Street Lending can be highly stimulative. Elsevier B.V. 2023-07 2023-05-18 /pmc/articles/PMC10193827/ /pubmed/37265688 http://dx.doi.org/10.1016/j.euroecorev.2023.104475 Text en © 2023 Elsevier B.V. All rights reserved. Since January 2020 Elsevier has created a COVID-19 resource centre with free information in English and Mandarin on the novel coronavirus COVID-19. The COVID-19 resource centre is hosted on Elsevier Connect, the company's public news and information website. Elsevier hereby grants permission to make all its COVID-19-related research that is available on the COVID-19 resource centre - including this research content - immediately available in PubMed Central and other publicly funded repositories, such as the WHO COVID database with rights for unrestricted research re-use and analyses in any form or by any means with acknowledgement of the original source. These permissions are granted for free by Elsevier for as long as the COVID-19 resource centre remains active.
spellingShingle Article
Cardamone, Dario
Sims, Eric
Wu, Jing Cynthia
Wall Street QE vs. Main Street Lending()
title Wall Street QE vs. Main Street Lending()
title_full Wall Street QE vs. Main Street Lending()
title_fullStr Wall Street QE vs. Main Street Lending()
title_full_unstemmed Wall Street QE vs. Main Street Lending()
title_short Wall Street QE vs. Main Street Lending()
title_sort wall street qe vs. main street lending()
topic Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10193827/
https://www.ncbi.nlm.nih.gov/pubmed/37265688
http://dx.doi.org/10.1016/j.euroecorev.2023.104475
work_keys_str_mv AT cardamonedario wallstreetqevsmainstreetlending
AT simseric wallstreetqevsmainstreetlending
AT wujingcynthia wallstreetqevsmainstreetlending