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regulating the banking system, in particular for liquidity and capital holdings. Within the context of a micro … macroeconomic shocks alongside shocks to the expected liquidity of banks and to the efficiency of the banking sector. We focus on … business cycle. Overall we find some rationale for Basel III in providing commercial banks with an incentive to hold a greater …
Persistent link: https://www.econbiz.de/10009003066
regulating the banking system, in particular for liquidity and capital holdings. Within the context of a micro … standard macroeconomic shocks alongside shocks to the expected liquidity of banks and to the efficiency of the banking sector … banks. Overall we find some rationale for Basel III in providing commercial banks with an incentive to hold liquid assets …
Persistent link: https://www.econbiz.de/10009003732
The Federal Reserve responded to the global financial crisis by initiating an unprecedented expansion of central bank money (bank reserves) once the policy rate had reached the lower bound. To capture the salient features of the crisis, we develop a model where the central bank can provide...
Persistent link: https://www.econbiz.de/10012271563
struggling to escape liquidity quicksands and stubbornly low or negative growth and employment trends. At the center of the … monetary policy pivot point. Since November 2011, the ECB has taken on an arguably activist liquidity-provider role relative to … integration. In December 2011, the ECB made clear its intention to inject massive liquidity when faced with crises of scale in …
Persistent link: https://www.econbiz.de/10010286538
struggling to escape liquidity quicksands and stubbornly low or negative growth and employment trends. At the center of the … monetary policy pivot point. Since November 2011, the ECB has taken on an arguably activist liquidity-provider role relative to … integration. In December 2011, the ECB made clear its intention to inject massive liquidity when faced with crises of scale in …
Persistent link: https://www.econbiz.de/10009652087
What instruments of monetary policy must be used in order to implement a unique equilibrium? This paper revisits the issues addressed by Poole (1970) and Sargent and Wallace (1975) on the multiplicity of equilibria when policy is conducted with either interest rate or money supply rules. We show...
Persistent link: https://www.econbiz.de/10005069536
such as liquidity and saving are explored. We conclude with a look at some of the new innovations in finance, and at the …
Persistent link: https://www.econbiz.de/10010281714
led to the creation of excessive global liquidity, which has contributed to asset price bubbles. Although the exchange …
Persistent link: https://www.econbiz.de/10013083537
Central banks repo market operations and liquidity infusions occasion a structural liquidity mismatch in bank balance … sheets and increase the dependence on central bank liquidity. This paper argues for what I term “Circular Monetary Economics …”, an approach to monetary policy that seeks to green and prudentially insulate the design and implementation of liquidity …
Persistent link: https://www.econbiz.de/10012825201
inappropriate characterizations of monetary policy, as well as to ill-defined discussions of liquidity effects, the bank lending …
Persistent link: https://www.econbiz.de/10012710838