Munich in July 2016. The goal of the thesis is to establish the configuration of collateral policy as a tool of central bank … policies in pursuit of different objectives, and to present collateral policies in practice, as well as impact and effects of … collateral policy. The thesis consists of three parts and nine chapters. The first part discusses the role of collateral in …

The past two decades have seen the construction of a tiered system of international liquidity provision, the first tier … acceptable collateral to the Fed, and the third tier including everyone else. It is a global dollar system, with the Fed …

Global liquidity provision is highly procyclical. The recent financial crisis has resulted in a flight to safety, with … meltdown. Bagehot's advice to 'lend freely at high rates against good collateral' has been stretched to the limit in order to … meet the liquidity needs of dysfunctional financial markets. As the eligibility criteria for central bank borrowing have …