Over the last two years, several central banks in Europe have adopted NIRP to achieve price stability and/or reduce appreciation pressures. Negative interest rates have supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound...

More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero...

The paper examines the development of structured finance, and complementary role of covered bond and securitization markets, in resolving current policy challenges in the euro area, especially in the area of monetary easing and greater integration of capital markets. It reviews the...

This paper examines the impact of macroeconomic and financial sector policy announcements in the United States, the United Kingdom, the euro area, and Japan during the recent crisis on interbank credit and liquidity risk premia. Announcements of interest rate cuts, liquidity support, liability...