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The lender of last resort
Freixas, Xavier; Parigi, Bruno M.; Rochet, Jean-Charles - 2003
fully collateralized repo market allows Central Banks to provide the adequate aggregated amount of liquidity and leave the … a framework where liquidity shocks cannot be distinguished from solvency ones and ask whether there is a need for a LOLR …
Persistent link: https://www.econbiz.de/10009636521
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How does the ECB allot liquidity in its weekly main refinancing operations?
Ejerskov, Steen; Moss, Clara Martin; Stracca, Livio - 2003
This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to … understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been … deviations of the overnight rate from the main refinancing rate. Moreover the paper finds that liquidity has affected the …
Persistent link: https://www.econbiz.de/10009635957
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Bank mergers, competition and liquidity
Carletti, Elena; Hartmann, Philipp; Spagnolo, Giancarlo - 2003
We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … in a differentiated loan market, hold reserves against liquidity shocks, and refinance in the interbank market. A merger … in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase …
Persistent link: https://www.econbiz.de/10009635892
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Optimal allotment policy in the Eurosystem's main refinancing operations
Ewerhart, Christian; Cassola, Nuno; Ejerskov, Steen; … - 2003
" benchmark allotment rule, with the effect of not alleviating a temporary liquidity shortage in the banking system. This is … the present paper, we show that when the monetary authority cares for both liquidity and interest rate conditions, the … threshold level for the accumulated aggregate liquidity position in the banking system prior to the last operation in a given …
Persistent link: https://www.econbiz.de/10009636518
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Monetary policy and capital regulation in the US and Europe
Cohen-Cole, Ethan; Morse, Jonathan - 2010
From the onset of the 2007-2009 crisis, the Federal Reserve and the European Central Bank have aggressively lowered interest rates. Both sets of changes are at odds with an anti-inflationary stance of monetary policy; indeed, as the crisis began in August 2007 inflation expectations were high...
Persistent link: https://www.econbiz.de/10009640318
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Interbank contagion at work
Iyer, Rajkamal; Peydró, José-Luis - 2010
This paper tests financial contagion due to interbank linkages. For identification we exploit an idiosyncratic, sudden 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...
Persistent link: https://www.econbiz.de/10009640412
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Downward nominal wage rigidity and the long-run Philips Curve
Coenen, Günter - 2003
This paper summarises the results of a quantitative study of the possible impact of downward nominal wage rigidity on the determination of inflation and output in the euro area and the existence of a non-vertical long-run Phillips curve. The study was undertaken in the context of the review of...
Persistent link: https://www.econbiz.de/10009635901
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Forecasting real GDP
Brand, Claus; Reimers, Hans-Eggert; Seitz, Franz - 2003
This paper analyses the information content of M1 for euro area real GDP since the beginning of the 1980s and reviews theoretical arguments on why real narrow money should help predict real GDP. We find that, unlike in the U.S., in the euro area, M1 has better and more robust forecasting...
Persistent link: https://www.econbiz.de/10009635922
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The demand for euro area currencies
Fischer, Björn; Köhler, Petra; Seitz, Franz - 2004
The present paper analyses currency in circulation in the euro area since the beginning of the 1980s. After a comprehensive literature review on this topic we present some stylised facts on currency holdings in the euro area countries as well as at an aggregate euro area level. The next chapter...
Persistent link: https://www.econbiz.de/10009636553
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Finance and growth in the EU
De Ávila, Diego Romero - 2003
This paper analyses the link between finance and growth by studying the effect that the process of financial deregulation and harmonisation of banking laws at the EU level has brought about on growth over the last 40 years. Our main findings point to the existence of a positive long-run growth...
Persistent link: https://www.econbiz.de/10009635911