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This paper offers an encompassing analysis of the ECB's collateral criteria between 2001 and 2013. A comprehensive … database of changes to collateral criteria is compiled and structured by asset classes. The main findings can be summarized in … three stylized facts: (1) Since the outbreak of the financial crisis, the ECB has been six times more active in collateral …
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Central banks' international reserve holdings have increased significantly in the recent past. While traditional models fail to explain this accumulation of reserves, the more recent literature argues that reserves are used as a lifejacket against currency crises. However, research so far has...
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To end a financial crisis, the central bank is to lend freely, against good collateral, at a high rate, according to … individual collateral from being produced and to create an information externality by raising the perceived value of average … collateral. Ironically, the participation of "bad" borrowers, with low quality collateral, in the central bank's lending program …
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