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Federal Reserve Liquidity Provision during the Financial Crisis of 2007-2009

Fleming, Michael J. - 2012

This paper examines the Federal Reserve's unprecedented liquidity provision during the financial crisis of 2007 …-2009. It first reviews how the Fed provides liquidity in normal times. It then explains how the Fed's new and expanded … liquidity facilities were intended to enable the central bank to fulfill its traditional lender-of-last-resort role during the …

Persistent link: https://www.econbiz.de/10013102405

The Role of Consumption Substitutability in the International Transmission of Shocks

Tille, Cédric - 2006

This paper develops a general framework to analyze the welfare consequences of monetary and fiscal shocks in an open economy, focusing on the role of the degree of substitutability between goods produced in different countries. We find that an expansionary shock that would be beneficial in a...

Persistent link: https://www.econbiz.de/10012735734

Minimum Price Increment, Competition for Liquidity Provision, and Price Discovery

Fleming, Michael J.; Nguyen, Giang; Ruela, Francisco - 2021

depth, and improved price efficiency.Moreover, slow traders become more competitive in liquidity provision and price …

Persistent link: https://www.econbiz.de/10013244513

How Do Global Banks Scramble for Liquidity? Evidence from the Asset-Backed Commercial Paper Freeze of 2007

Acharya, Viral V. - 2013

In August of 2007, banks faced a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market. We … investigate how banks scrambled for liquidity in response to this freeze and its implications for corporate borrowing. Commercial …

Persistent link: https://www.econbiz.de/10013077991

Macroeconomic Interdependence and the International Role of the Dollar

Goldberg, Linda S. - 2008

The U.S. dollar plays a key role in international trade invoicing along two complementary dimensions. First, most U.S. exports and imports are invoiced in dollars; second, trade flows that do not involve the United States are often invoiced in dollars, a fact that has received relatively little...

Persistent link: https://www.econbiz.de/10012725210

Repo Market Effects of the Term Securities Lending Facility

Fleming, Michael J. - 2010

The Term Securities Lending Facility (TSLF) was introduced by the Federal Reserve to promote liquidity in the financing …

Persistent link: https://www.econbiz.de/10013148779

ECB Monetary Operations and the Interbank Repo Market

Dunne, Peter G. - 2014

We examine the relationship between monetary policy operations and interbank borrowing and lending of funds using sovereign bonds as collateral. We first establish that, in the precrisis period, there are important but rather weak relations between these funding sources and that this...

Persistent link: https://www.econbiz.de/10013061127

Is the Integration of World Asset Markets Necessarily Beneficial in the Presence of Monetary Shocks?

Tille, Cédric - 2006

This paper evaluates the consequences of the integration of international asset markets when goods markets are characterized by price rigidities. Using an open economy general equilibrium model with volatility in the money markets, we show that such an integration is not universally beneficial....

Persistent link: https://www.econbiz.de/10014056493

How Valuable is Exchange Rate Flexibilty? Optimal Monetary Policy Under Sectoral Shocks

Tille, Cédric - 2006

The paper explores the optimal monetary policy reaction to productivity shocks in an open economy. Whereas earlier studies assume that countries specialize in producing particular goods, I enrich the analysis by allowing for incomplete specialization. I confirm the finding of Obstfeld and Rogoff...

Persistent link: https://www.econbiz.de/10014056752

Exorbitant Privilege? Quantitative Easing and the Bond Market Subsidy of Prospective Fallen Angels

Acharya, Viral V.; Banerjee, Ryan; Crosignani, Matteo; … - 2022

We document capital misallocation in the U.S. investment-grade (IG) corporate bond market, driven by quantitative easing (QE). Prospective fallen angels—risky firms just above the IG rating cutoff—enjoyed subsidized bond financing since 2009, especially when the scale of QE purchases peaked...

Persistent link: https://www.econbiz.de/10013298377