Scheubel, Beatrice; Körding, Julia - 2013 - This version: 15 February 2013
regulation may interfere with the central bank's influence on short-term money market rates. This paper tries to fill the gap in … understanding the interaction between the money market, the central bank, and the regulator. Importantly, it shows that the … existence of a central bank can be welfare-improving when the market equilibrium is driven by collateral constraints and …