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This paper contributes to the existing literature on central bank repo auctions. It is based on a structural …
Persistent link: https://www.econbiz.de/10003516661
It is argued that bidders in liquidity-providing central bank operations should typically possess declining marginal valuations. Based on this hypothesis, we construct an equilibrium in central bank refinancing operations organised as variable rate tenders. In the case of the discriminatory...
Persistent link: https://www.econbiz.de/10003358659