We disentangle the effects of monetary policy announcements on real economic variables into an interest rate shock … component and a central bank information shock component. We identify both components using changes in interest rate futures and … that a contractionary interest rate shock appreciates the dollar, increases the excess bond premium, and leads to a decline …

level clearly. A positive information shock which also induces increases in interest rate is perceived by private agents as …

cost channel theory. Taken together, the results of both panel data and time series analyses imply that the ECB’s low …

satisfies the restrictions. Their method generates impulse responses that are consistent with macroeconomic theory, but that …

addition, it expands the current research agenda by considering a neglected factor: The quality of eligible collateral (QEC … investigates to what extent the quality of eligible collateral is able to explain inflation employing the first comprehensive … establishing QEC as one pivotal element of a theory of central banking. Collateralisation of the issuance of money and the …

studying an extensive dataset of banks' liquidity uptake and pledged collateral in central bank repos. We document systemic … arbitrage whereby banks funnel credit risk and low-quality collateral to the central bank. Weaker banks use lower quality … collateral to demand disproportionately larger amounts of central bank money (liquidity). This holds both before and after the …