From the onset of the 2007-2009 crisis, the Federal Reserve and the European Central Bank have aggressively lowered … has partial control over bank regulation it can exercise regulatory lenience. Two, the Fed’s stronger output orientation …

shock caused by a large-bank failure in conjunction with detailed data on interbank exposures. First, we find robust … evidence that higher interbank exposure to the failed bank leads to large deposit withdrawals. Second, the magnitude of …

This study examines empirically the information content of the euro area Bank Lending Survey for aggregate credit and … leading indicator for euro area bank credit and real GDP growth. Notwithstanding the short history of the survey, the findings … results are supportive of the existence of a bank lending, balance sheet, and risk-taking channel of monetary policy. They …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

This paper explores the role of central bank capital in ensuring that central banks focus on price stability in … comprehensive, model of the relationship between a central bank's balance sheet structure and its inflation performance. The first …&L) of a central bank always remains positive, despite adverse shocks, assuming a stability oriented monetary policy. The …

Before 1914, there was little doubt that central bank policy meant first of all control of short term interest rates … which a central bank should, via open market operation, steer some reserve concept, which would impact via the money … rates only in the 1990s, for example the Bank of England never adopted RPD. This paper explains the astonishing rise and …

the efficiency of an unsecured interbank market; if instead, the main source of moral hazard is loans monitoring, then the …