Above and Beyond Interest Rates: Risk-taking and Large Central Bank Balance Sheets

Marți, 13 ianuarie 2026 – ora 16:30 – sala 3M4 (etaj 1, clădirea Moxa)

Radu Cristea

International Monetary Fund and University of Cambridge; cristea.raduc@gmail.com

Abstract:

This paper documents how the yield curve alone may not be a sufficient statistic to gauge how financial markets internalize monetary policy announcements. Analyzing the high-frequency reaction of riskier asset prices around central bank announcements in the US and UK, above and beyond yield curve surprises, this paper highlights the multi-faceted nature of the risk-taking channel of monetary policy. Risk-on channels associated with conventional monetary policy could be linked to the search for yield and low economic uncertainty, but during the era of unconventional monetary policy, strong evidence links an additional risk-taking channel to excess liquidity and portfolio rebalance. More broadly, these results suggest unconventional monetary policies have been more effective than previously estimated.

Zoom:
https://ase.zoom.us/j/88975840175?pwd=Q0ZnbHl0TjhqcEtzVnhMUWRmdWdPQT09

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