The European Central Bank's asset purchase programs, while intended to stabilize the economy, may have unintended side …

bank activity has on interbank markets. In our model, banks optimize a portfolio of risky investments and riskless excess … household deposits. We then introduce a central bank into the model and show that central bank activity enhances financial … stability. We model the default of a large bank and analyse the resulting contagion effects. This is compared to a common shock …

The dynamic effects of ECB announcements, disentangled into pure monetary policy and central bank information shocks … bank information shocks exhibit strong heterogeneities across currency pairs. This disparity can be rationalized by an …

The US Federal Reserve cut interest rates more vigorously in the recent recession than the European Central Bank did …

interpreted by real-time market commentaries as containing information about asset purchase programmes aimed to stabilise …