This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

This paper shows that depending on the distribution of banks' uncertain liquidity needs and on how monetary policy is …

excess reserves, implying a structural liquidity surplus in the euro area banking sector. Against this background, the first … part of this paper analyses the Eurosystem's liquidity management during normal times, crisis times and times of too low in … banks operate under a structural liquidity surplus. The model shows that increasing excess reserves have no or even a …

countries. This paper develops a two-country New Keynesian model { calibrated to represent a high- and a low-liquidity euro area …. These dampening effects are higher in the high-liquidity country. We find similar results in response to a monetary policy …

discusses options for liquidity absorption by the Bundesbank to forestall asset price bubbles in Germany. …

This paper analyses the impact of different treatments of government bonds in bank liquidity regulation on financial … stability. Using a theoretical model, we show that a sudden increase in sovereign default risk may lead to liquidity issues in … the banking sector, implying the insolvency of a significant number of banks. Liquidity requirements do not contribute to …