the model for theoretical and quantitative analyses of policy issues facing modern central banks. …

acquired by central banks, and changes in the interest rate paid on reserves. We first extend a standard New Keynesian model to … 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 …

Federal Reserve began to establish or expand Temporary Reciprocal Currency Arrangements with fourteen other central banks …. These central banks had the capacity to use the swap facilities to provide dollar liquidity to institutions in their …, suggests that the dollar swap lines among central banks were effective at reducing the dollar funding pressures abroad and the …

Central banks analyze a wide range of data to obtain better measures of underlying inflationary pressures. Factor …

sources of (potentially time-varying) credit spreads and to allow a role for the central bank's balance sheet in determining … prescriptions and to consider additional dimensions of central bank policy--variations in the size and composition of the central …

. The supply of dollars by the Federal Reserve to foreign central banks via reciprocal currency arrangements (swap lines … capital and partly to heightened counterparty credit risk. Central bank interventions helped reduce the funding liquidity risk …

and the optimal policy of a central bank in response to both idiosyncratic and aggregate shocks. In particular, we … the market ex post. We show that a central bank should use different tools to manage different types of shocks …

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 …