Ella Getz Wold

Eggertsson, Gauti; Summers, Lawrence H., Juelsrud, Ragnar Enger & Wold, Ella Getz (2023)

Negative nominal interest rates and the bank lending channel

Review of Economic Studies Doi: 10.1093/restud/rdad085

We investigate the bank lending channel of negative nominal policy rates from an empirical and theoretical perspective. For the empirical results we rely on Swedish data, including daily banklevel lending rates. We find that retail household deposit rates are subject to a lower bound (DLB). Empirically, once the DLB is met, the pass-through to mortgage lending rates and credit volumes is substantially lower and bank equity values decline in response to further policy rate cuts. We construct a banking sector model and use our estimate of the pass-through of negative policy rates to lending rates as an identified moment to parameterize the model and assess the impact of negative policy rates in general equilibrium. Using the theoretical framework, we derive a sufficient statistic for when negative policy rates are expansionary and when they are not.

Eggertsson, Gauti; Robbins, Jacob & Wold, Ella Getz (2021)

Kaldor and Piketty's facts: The rise of monopoly power in the United States

Journal of Monetary Economics, 124, s. 519- 538. Doi: 10.1016/j.jmoneco.2021.09.007

The macroeconomic data of the last fifty years have overturned at least two of Kaldor’s famous stylized growth facts: constant interest rates, and a constant labor share. At the same time, the research of Piketty and others has introduced several new and surprising facts: an increase in the financial wealth-to-output ratio in the US, an increase in measured Tobin’s Q, and a divergence between the marginal and average returns on capital. In this paper, we argue that these trends can be explained by an increase in market power and pure profits in the US economy—that is, the emergence of a non-zero-rent economy—along with forces that have led to a persistent long-term decline in real interest rates. We make three parsimonious modifications to the standard neoclassical model to explain these trends. Using recent estimates of the increase in markups and the decrease in real interest rates, we show that our model can quantitatively match these new stylized macroeconomic facts.

Juelsrud, Ragnar Enger & Wold, Ella Getz (2020)

Risk-weighted capital requirements and portfolio rebalancing

Journal of Financial Intermediation Doi: 10.1016/j.jfi.2018.10.002

Wold, Ella Getz (2022)

Boliglånsreguleringen gjør ikke husholdningene mindre sårbare

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