role of repo markets and the importance of collateral velocity and the need to avoid wedges between repo and monetary …

Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of … money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled … spring, the larger the quantitative easing (QE) efforts, the longer the central banks will impact the collateral market and …

into their holding of capital or collateral. An eigenvector centrality based ‘super-spreader’ tax has been designed and …

introduces a costly liquidation process for foreclosed collateral and endogenous recovery rates in a dynamic stochastic general …-cyclical when collateral is costly to liquidate. Through links between recovery rates, risk premia, and default risk, the model … generates an additional liquidity spiral, a feedback loop for the financial accelerator. We illustrate how collateral …

counterparties; (ii) a congruence of collateral policies with market developments; (iii) an ability to increase the average maturity … of liquidity provision; and (iv) central bank cooperation to facilitate the use of cross-border collateral. Flexible use …