Cassola, Nuno; Hortacsu, Ali; Kastl, Jakub - National Bureau of Economic Research (NBER) - 2009
In this paper we study European banks' demand for short-term funds (liquidity) during the summer 2007 subprime market crisis. We use bidding data from the European Central Bank's auctions for one-week loans, their main channel of monetary policy implementation. Through a model of bidding, we...