Exploiting the introduction of the ECB's tiering system for remunerating excess reserve holdings, we document the importance of access to the money market for bank lending. We show that the two-tier system produced positive wealth effects for banks with excess reserves and encouraged a...

In this paper, we survey the nascent literature on the transmission of negative policy rates. We discuss the theory of how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the growing evidence that negative policy rates are...

This paper investigates whether bank-lending behaviour can provide a convincing explanation for the effects of monetary policy on inflation over the period 1993-2009. This period was selected on account that it marks the beginning of indirect monetary policy regime in Nigeria. Applying the ADF...