of policy have recently been of greater importance: changes in the supply of bank reserves, changes in the assets … allow a role for the central bank’s balance sheet in equilibrium determination and then consider the connections between … the strict sense and targeted asset purchases by a central bank, arguing that, according to our model, while the former is …

became more sensitive to a borrowing bank’s characteristics. While the market did not contract dramatically, lending rates … increased. Further, the market did not seem to expand to meet the increased demand predicted by the drop in other bank funding … find that the characteristics of the lending bank significantly affect the amount of interbank loans it makes. In …