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On several occasions during the period 2001-2003, the European Central Bank (ECB) decided to deviate from its "neutral" benchmark allotment rule, with the effect of not alleviating a temporary liquidity shortage in the banking system. This is remarkable because it implied the possibility of...
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valuations. Based on this hypothesis, we construct an equilibrium in central bank refinancing operations organised as variable …
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in the ECB's main refinancing operations (MROs) during the ongoing turmoil in money and financial markets. We employ a … that increased bid rates during the turmoil can be explained by, inter alia, the increased individual refinancing motive …
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The relation between the ECB’s main refinancing (MRO) rates and the money market is key for the monetary transmission … allotment policy introduced by the ECB as an unconventionalmeasure to re-stabilize banks’ refinancing conditions. -- Financial …
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