We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area … crisis and the associated introduction of new liquidity regulation. …

-quality firms. Public liquidity support preserves the overall production capacity. However, by dampening the cleansing effects, it … the expectations of liquidity support that motivate low-quality firms to overinvest pre-crisis. Finally, the size of … on savings discourage firms from self-insurance against crises through internal liquidity accumulation …

habitat theory. We find that the effectiveness of these policies are similar to other studies in that the liquidity provided … several studies that point toward counter party risk, not lack of liquidity, as the problem in financial markets at the time …

We analyse the impact of the Liquidity Coverage Ratio (LCR) on the demand for central bank reserves in the euro area … crisis and the associated introduction of new liquidity regulation …

countries. This paper develops a two-country New Keynesian model { calibrated to represent a high- and a low-liquidity euro area …. These dampening effects are higher in the high-liquidity country. We find similar results in response to a monetary policy …

liquidity recovery. Using novel, micro data of the French banking system on the pool of collateral eligible to ECB open market … operations, we construct a "liquidity mismatch indicator (LMI)" for the aggregate banking sector that highlights the central bank … influence on the bank liquidity condition. Our results show that central bank liquidity and haircut policies have indeed helped …