Avernas, Adrien d'; Vandeweyer, Quentin; Darracq … - 2020
dynamics. Increasing the supply of reserves reduces liquidity risk in the traditional banking sector, but fails to reach the …This paper investigates the efficiency of various monetary policy instruments to stabilize asset prices in a liquidity … shadow banking sector. When the shadow banking sector is large, as in the US in 2008, the central bank can further stabilize …