At the beginning of 2004, the Eurosystem implemented several modifications of its operational framework and liquidity … liquidity management are responsible for a significant decrease in the interest rate volatility …

The prevailing models of liquidity traps suggest that a deflationary trap is a stable steady state in a multiple … presents a reduced-form model that integrates liquidity effects into the analysis of interest rate rules. In contrast to the …

model is found to account for liquidity effects, generate higher persistence in output and inflation, and capture the …

, holding intermediaries' debt as cash. This paper shows that intermediaries' liquidity creation stimulates growth -- firms hold …. Introducing government debt as a competing source of liquidity is a double-edged sword: firms hold more liquidity in every state … of the world, but by squeezing intermediaries' profits and amplifying their leverage cycle, public liquidity increases …

The state of bank liquidity, measured as the banks' net excess reserves (NER) with the central bank, is a critical …