In recent weeks and months, a number of market commentators have drawn comparisons between the prevailing economic landscape and previous financial crises, episodes and events. These have ranged from talk of a new ‘Volcker Shock’ to a repeat of the 1987 stockmarket crash, the dot.com burst...

Tiny changes in the American monetary policy can have dramatic effects on the rest of the world because of dollar's double role of national and international currency. This is the Triffin dilemma. The paper shows how it works through three examples: price of commodities, dollarization, and the...

The global financial crisis of 2007–2008, consequences of which continue to adversely affect the world economy, is often called a «Minsky crisis». A prominent American economist Hyman Philip Minsky studied capitalist economic system paying special attention to its major properties, in...

Is there a link between loose monetary conditions, credit growth, house price booms, and financial instability? This paper analyzes the role of interest rates and credit in driving house price booms and busts with data spanning 140 years of modern economic history in the advanced economies. We...

This paper investigates the impact of the “unconventional” monetary policy measures taken by the Eurosystem on both the unsecured and the secured money markets. Furthermore, we provide insight into the shifts between the unsecured and secured markets. We provide a euro area overview and a...

I offer a plan for supplying liquidity during financial emergencies that altogether dispenses with direct central-bank lending. The plan instead relies upon "flexible" open market operations to supply liquidity in amounts needed and to firms most in need of it, where the necessary "flexibility"...

We employ a unique hand-collected dataset and a novel methodology to examine systemic risk before and after the largest U.S. banking crisis of the 20th century. Our systemic risk measure captures both the credit risk of an individual bank as well as a bank’s position in the network. We...

Brexit referendum will impact sooner or later, since the European economies are massively underperforming and UK is chained to them.This referendum is “advisory”, not “binding”.In case of Brexit scenario the strategy should be UK to diversify its international links.World is an Oyster,...

This paper provides quantitative evidence on the interbank network’s role in transmitting the Panic of 1907 across the United States. Originating in a few New York City banks and trust companies, the panic led to payment suspensions and emergency currency issuance in many cities. Data on the...

We investigate the euro unsecured interbank money market during the current financial crisis. To identify the loans traded in this market and settled in TARGET2, we extend the algorithm developed by Furfine (1999) and adapt it to the European interbank loan market with maturity up to one year....