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Sweden’s central bank implemented a negative interest rate policy (NIRP) in 2015, one year after adopting a zero-interest rate policy. Due to the monetary policy’s untested framework,experts are divided on the effectiveness of such a policy as well as its fortitude when faced with an economic recession. The lack of research on how the interest rate affects various economic metrics has left ample room for analysis and discussion on the subject. The aim ofthis thesis is to analyze how Sweden’s monetary policy has affected the flow of foreign directinvestments (FDI). Specifically, the paper will be focused on discovering the effect of theRiksbank’s negative repo rate policy on net FDI inflows between 2006 and 2017. Our quantitative analysis found no significant relationship between Sweden’s repo rate and itsFDI inflows. However, significance was found in the variables exchange rate, research and development expenditures, corporate taxes, and wages.

Zombie banks are banks that are practically insolvent but continue to exist through hiding bad loans on their balance sheet. This can be achieved by rolling over bad loans instead of writing them off, a process known as forbearance lending, zombie lending or evergreening. Zombie banks have received increased attention of late, not least because of the sovereign debt and banking crisis in Europe. This follows other banking crises in the US and Japan which have equally seen an increased number of bank failures, and where insolvent companies have been kept alive by banks. This study aims to give a theoretical assessment of the phenomenon around zombie banks and forbearance lending. Although zombie banks are the focus of a wide public debate, the existing research has not been able to fully explain many aspects around them, such as the several motives for forbearance lending, the impact of forbearance lending on the overall portfolio of zombie banks, or the right policy response in dealing with them. In light of this, the study presents three models that simulate the behavior of banks when rolling over bad loans. These models offer insights into the causes and effects of zombie banking, and also allow us to analyze the context of policy measures by the government and the central bank. To put the models into the right context, the study also provides a detailed overview of the theoretical and empirical literature as well as the practical experience with zombie banks and forbearance lending in Japan and Europe.

本篇研究旨在探討利率政策對所得分佈不均的關係，利用 Azzimonti, De Francisco, and Quadrini (2014) 的模型加以延伸擴展，並加入土地或資產的價格變動，從而進一步探討中央銀行的低利率政策對企業主與受薪階層的影響。 模型假設簡單將市場參與者分成2大類，分別是企業家與受薪的勞工，藉由此2大類分別的終生效用函數對利率的變動來說明利率政策對所得分配的影響。Joseph E. Stiglitz (2015b) 提及在低利率政策之下將導致信用的膨脹，進而使土地或資產的價值提高，而土地或資產之價格不斷上漲為造成所得分佈不均之重要原因之一，故本篇論文將土地價格變動納入模型加以延伸，並觀察台灣近幾年之現況。 此篇研究發現，在中央銀行的低利率政策之下，有產階層的企業家之財富條件將會愈來愈好，而與之相對的受薪階層的勞工之財富條件將會愈來愈差；而台灣近幾年之數據亦顯示當利率降低之際，代表所得分佈不均的GINI指數隨之上升，與本篇之研究結果相符。 / The objective of this thesis is to testify the relation between interest rate policy and income inequality. We develop a model based on Azzimonti, De Francisco, and Quadrini (2014) and expand the model by considering the change of the land or asset price so as to analyze the impact of low interest rate on the welfare of entrepreneurs and workers, respectively. The model simply divides the agents into two groups, entrepreneurs and workers, and uses their lifetime utility to explain the impact of interest rate policy on income inequality. Joseph E. Stiglitz (2015b) mentioned that low interest rate would expand the credit availability and drive up the land or asset price. The continuous upward trend of land or asset price is one of the important reason causing income inequality. After taking into account the land or asset price on the sensibility of income inequality toward interest rate, this thesis is able to provide a theoretical underpinning of Taiwan’s empirical observation in recent years. We find out that with low interest rate policy, entrepreneurs’ wealth condition is doing better and better while the workers’ wealth is getting worse. Taiwan’s data in the recent years also shows that once the central bank lowering the interest rate GINI index, which represent the income inequality distribution, will rise immediately. This situation is in accord with the thesis.

This thesis examines the effects of monetary policy shocks on the housing market. To this end, TVP-VAR model with dynamic dimension selection and stochastic volatility is estimated using monthly data for the United States over the period 1999-2017. Moreover, the model features estimating the optimal value of the Bayesian shrinkage coefficient in a time-varying manner. Since the sample covers the Zero Lower Bound period, Wu-Xia shadow rate is employed to measure the stance of monetary policy. To assess the link between housing variables and monetary policy, impulse responses and forecast error variance decompositions are provided. However, due to the time-varying nature of the model, they are estimated only for selected time periods that correspond both to the events that most likely influenced the path of macroeconomic and financial variables and to periods of low economic uncertainty. The main results are threefold. First, the model suggests that monetary policy shocks can contribute to developments in house prices. Second, the stimulative monetary policy positively affects residential investment and negatively affects mortgage rates, however, the effects are not significant due to the large confidence bands of the impulse responses. Third, higher values of the shrinkage hyperparameter are crucial for...

Zombie banks are banks that are practically insolvent but continue to exist through hiding bad loans on their balance sheet. This can be achieved by rolling over bad loans instead of writing them off, a process known as forbearance lending, zombie lending or evergreening. Zombie banks have received increased attention of late, not least because of the sovereign debt and banking crisis in Europe. This follows other banking crises in the US and Japan which have equally seen an increased number of bank failures, and where insolvent companies have been kept alive by banks. This study aims to give a theoretical assessment of the phenomenon around zombie banks and forbearance lending. Although zombie banks are the focus of a wide public debate, the existing research has not been able to fully explain many aspects around them, such as the several motives for forbearance lending, the impact of forbearance lending on the overall portfolio of zombie banks, or the right policy response in dealing with them. In light of this, the study presents three models that simulate the behavior of banks when rolling over bad loans. These models offer insights into the causes and effects of zombie banking, and also allow us to analyze the context of policy measures by the government and the central bank. To put the models into the right context, the study also provides a detailed overview of the theoretical and empirical literature as well as the practical experience with zombie banks and forbearance lending in Japan and Europe.

This thesis is focused on the comparison of methods of financing budget deficits and national debt management in the Czech Republic with other OECD countries in the context of the current situation on the global financial market. The first part describes the methods of financing budget deficits in the Czech Republic which are compared with selected OECD countries. The second part is aimed at the impact of foreign exchange interventions of the Czech National Bank on the domestic bond market and it is compared with negative interest rates policy. The last part analyses the impact of the Public Sector Purchase Programme on the Czech Republic's bond market. The thesis implies that besides other factors, foreign exchange intervention of the Czech National Bank have an impact on the current situation on the bond market. While the impact of the programme PSPP has not yet proved.

The main aim of this thesis is to discover a suitable instant of time for the Czech Republic to join European Monetary Union. I am analyzing dependence between monetary policies of the Czech National Bank (CNB) and the European Central Bank (ECB) themselves as well as in relation to essential Czech macroeconomic indicators. My observation is focused on interest rate policies represented by operative interest rates, on monetary policies represented by indices of nominal effective exchange rates and on convergence monitoring. The analytical instruments I used in the thesis are correlation analyses, linear trends, the Granger causality test and the Impulse-Reaction test. Besides, my thesis examines fulfillment of the Convergence (Maastricht) criteria in the Czech Republic and other central European countries. This thesis also examines impact of the European monetary policy on some Eurozone member countries.