Narrow search
Showing 1 - 10 of 10,420
Cover Image
Excess reserves and monetary policy tightening
Fricke, Daniel; Greppmair, Stefan; Paludkiewicz, Karol - 2024 - This draft: February 2, 2024
We show that the transmission of the European Central Bank’s (ECB) recent monetary policy tightening differs across banks depending on their level of excess reserves. Specifically, the net worth of reserve-rich banks may display a boost when the interest rate paid on reserves increases...
Persistent link: https://www.econbiz.de/10014481115
Cover Image
Excess liquidity in the euro area : sources and remedies
Dąbrowski, Marek - 2023
The excess liquidity in the euro area is a product of a long period of quantitative easing. It changed the operational … system (ARS). To eliminate excess liquidity and return to the SRS, the ECB must intensify quantitative tightening, which is …
Persistent link: https://www.econbiz.de/10014491928
Cover Image
Federal reserve tools for managing rates and reserves
Martin, Antoine; McAndrews, James Joseph; Palida, Ali; … - 2013
overnight RRPs (ON RRPs) may provide a better floor on rates than term RRPs because they are available to absorb daily liquidity …
Persistent link: https://www.econbiz.de/10010201212
Cover Image
ECB monetary operations and the interbank repo market
Dunne, Peter G.; Fleming, Michael J.; Zholos, Andrey - 2013
We examine the relationship between monetary policy operations and interbank borrowing and lending of funds using sovereign bonds as collateral. We first establish that, in the precrisis period, there are important but rather weak relations between these funding sources and that this...
Persistent link: https://www.econbiz.de/10010222894
Cover Image
Scarce, abundant, or ample? : a time-varying model of the reserve demand curve
Afonso, Gara; Giannone, Domenico; La Spada, Gabriele; … - 2022
Does the federal funds rate respond to shocks when aggregate reserves are in the trillions of dollars? Has banks' demand for reserves moved over time? We provide a structural time-varying estimate of the slope of the reserve demand curve over 2010-21. We estimate a time-varying vector...
Persistent link: https://www.econbiz.de/10013257201
Cover Image
A simple framework for analyzing the macroeconomic effects of inside money
Világi, Balázs; Vonnák, Balázs - 2022
The majority of the New Keynesian DSGE literature assumes that the macroeconomic effects of monetary policy can be satisfactorily described by an interest rate rule without addressing the details of the money supply. We investigate whether this approach remains valid in the presence of inside...
Persistent link: https://www.econbiz.de/10013175430
Cover Image
Excess liquidity and the usefulness of the money multiplier
Berk, Jan Marc; End, Jan-Willem van den - In: Credit and capital markets : Kredit und Kapital 55 (2022) 4, pp. 457-488
due to excess supply of reserves. This so-called excess liquidity trap has adverse economic consequences, is persistent … provide an example of supporting policies that are effective in escaping the excess liquidity trap. …
Persistent link: https://www.econbiz.de/10014518597
Cover Image
M3 money demand and excess liquidity in the euro area
Dreger, Christian; Wolters, Jürgen - 2010
elasticity of money demand after 2001 is taken into account. Measures of excess liquidity do not show significant inflation …
Persistent link: https://www.econbiz.de/10011518878
Cover Image
M3 money demand and excess liquidity in the euro area
Dreger, Christian; Wolters, Jürgen - 2008
Money growth in the euro area has exceeded its target since 2001. Likewise, recent empirical studies did not find evidence in favour of a stable long run money demand function. The equation appears to be increasingly unstable if more recent data are used. If the link between money balances and...
Persistent link: https://www.econbiz.de/10011384239
Cover Image
Market discipline and liquidity risk : evidence from the interbank funds market
Sarmiento, Miguel - 2016
demand for liquidity in the interbank market as wells as banks' access to this market. Results indicate that riskier banks … pay higher prices and borrow less liquidity, concurrent with the existence of market discipline. More capitalized and … higher prices and hoard liquidity when liquidity positions across them are more imbalanced and during a monetary policy …
Persistent link: https://www.econbiz.de/10011554714