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Banks, Liquidity Management and Monetary Policy
Bianchi, Javier; Bigio, Saki - National Bureau of Economic Research (NBER) - 2014
random and therefore create liquidity risk, which in turn determines the supply of credit and the money multiplier. We study … profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …
Persistent link: https://www.econbiz.de/10010950643
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An Empirical Analysis of the Fed's Term Auction Facility
Benmelech, Efraim - National Bureau of Economic Research (NBER) - 2012
was to ensure that liquidity provisions could be disseminated efficiently even when the unsecured interbank markets were …
Persistent link: https://www.econbiz.de/10010950874
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Illiquidity and Interest Rate Policy
Diamond, Douglas W.; Rajan, Raghuram G. - National Bureau of Economic Research (NBER) - 2009
The cheapest way for banks to finance long term illiquid projects is typically to borrow short term from households. But when household needs for funds are high, interest rates will rise sharply, debtors will have to shut down illiquid projects, and in extremis, will face more damaging runs....
Persistent link: https://www.econbiz.de/10005087453
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The Macroeconomics of Shadow Banking
Moreira, Alan; Savov, Alexi - National Bureau of Economic Research (NBER) - 2014
We build a macroeconomic model that centers on liquidity transformation in the financial sector. Intermediaries … maximize liquidity creation by issuing securities that are money-like in normal times but become illiquid in a crash when … collateral is scarce. We call this process shadow banking. A rise in uncertainty raises demand for crash-proof liquidity, forcing …
Persistent link: https://www.econbiz.de/10010821757
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Monetary and Fiscal Stimuli, Ownership Structure, and China's Housing Market
Deng, Yongheng; Morck, Randall; Wu, Jing; Yeung, Bernard - National Bureau of Economic Research (NBER) - 2011
In the recent financial crisis, macroeconomic stimuli produced mixed results across developed economies. In contrast, China's stimulus boosted real GDP growth from an annualized 6.2% in the first quarter of 2009 trough to 11.9% in the first quarter of 2010. Amidst this phenomenal response, land...
Persistent link: https://www.econbiz.de/10008869238
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Betting the House
Jorda, Oscar; Taylor, Alan M.; Schularick, Moritz HP. - National Bureau of Economic Research (NBER) - 2014
Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...
Persistent link: https://www.econbiz.de/10011106101
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Shocks, Structures or Monetary Policies? The Euro Area and US After 2001
Christiano, Lawrence; Rostagno, Massimo; Motto, Roberto - National Bureau of Economic Research (NBER) - 2007
The US Federal Reserve cut interest rates more vigorously in the recent recession than the European Central Bank did. By comparison with the Fed, the ECB followed a more measured course of action. We use an estimated dynamic general equilibrium model with financial frictions to show that...
Persistent link: https://www.econbiz.de/10005085028
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How Debt Markets have Malfunctioned in the Crisis
Krishnamurthy, Arvind - National Bureau of Economic Research (NBER) - 2009
effects can arise, so that less liquidity and a higher cost for finance can reinforce each other in a contagious spiral. I … document the remarkable rise in the premium that investors placed on liquidity during the crisis. Next, I show how these issues …
Persistent link: https://www.econbiz.de/10008634720
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When Everyone Runs for the Exit
Pedersen, Lasse Heje - National Bureau of Economic Research (NBER) - 2009
liquidity crisis and, in particular, the quant event of 2007. …
Persistent link: https://www.econbiz.de/10005108391
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Negative Nominal Interest Rates: Three ways to overcome the zero lower bound
Buiter, Willem Hendrik - National Bureau of Economic Research (NBER) - 2009
The paper considers three methods for eliminating the zero lower bound on nominal interest rates and thus for restoring symmetry to domain over which the central bank can vary its policy rate. They are: (1) abolishing currency (which would also be a useful crime-fighting measure); (2) paying...
Persistent link: https://www.econbiz.de/10005036814