and credit easing. The central bank controls the policy rate, i.e. the price of money in open market operations, as well … increases the size of the central bank's balance sheet, can increase real activity and prices, while a credit easing policy … prices. The effectiveness of quantitative and credit easing is however limited to the extent that eligible assets are scarce …

featuring heterogeneous banks, interbank markets for both secured and unsecured credit, and a central bank. The model features a …