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financial crisis, in which liquidity shocks become more erratic and the total costs of defaults increase, central banks may want … riskiness of counter parties and issuers is endogenous to the central bank's credit policies and related risk control framework …
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Central-bank collateral policy governs the convertibility of assets into central-bank money provided directly by the central bank. Focusing on government bonds, we develop clean identification of variation in such convertibility by exploiting differential treatment of same-country government...
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on financial markets and the wider economy. They can, for example, bias the private provision of real liquidity and …
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We study how the subjective beliefs about loan repayment on the side of liquidity-constrained banks affect the central … bank's incentives to set looser collateral standards increase. This reduces the risk of deficient bank lending if …
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