by the world's main central banks, including differences in central banks' management of marginal lending and deposit … facilities in response to shocks. Our model is consistent with central banks' observed practice of rationing access to marginal …

. Freeman's conclusion that the central bank should absorb losses related to default to provide risk-sharing goes against the … concern that central banks should limit their exposure to credit risk. We extend Freeman's model by introducing moral hazard …. With moral hazard, the central bank should avoid absorbing losses, contrary to Freeman's argument. However, we show that …

individual characteristics but also on its position within the banking network. A bank is deemed to be "central" if, based on our …

most existing theories of central bank independence. Delegation trades off the cost of having a possibly incompetent …

We examine the diffusion of real-time gross settlement (RTGS) technology across all 174 central banks. RTGS reduces … settlement risk and facilitates financial innovation in the settlement of foreign exchange trades. In 1985, only three central …

The perceptions of a central bank's inflation aversion may reflect institutional structure or, more dynamically, the … for persistent variation in market perceptions of central bank inflation aversion. The first years of the European Central …

Granting central banks independence from short-term political control is widely assumed to decrease inflation by … paper does not find evidence that the costs of disinflation are lower in countries with independent central banks, even when … differences in contracting behavior are taken into account. It also does not find evidence that central bank independence inhibits …