taking up the revived debate on whether central banks should use the interest rate to directly respond to the build-up of …

combination of a number of factors, such as banks following strict internal credit limits, investment incentives created by yield … liquidity that resulted also determined TARGET2 balances. At the individual bank level, when controlling for banks' capital, non … smaller and better-capitalised banks, and for banking groups with liquidity centralised at the head institution. In addition …

banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite … central banks cannot attain both low inflation and financial stability. …

-bail-out world, the trade-off between financial stability and the cost of capital, the feasibility for central banks to manage their …

central bank's reaction to liquidity stress gives banks incentives to invest in excessive liquidity transformation, triggering …

banks play complex, long-horizon games and face more than one tradeoff. We account for these issues in a simple infinite …, independent central banks cannot in general attain both low inflation and financial stability. …

insurance schemes; the double-edged sword nature of liquidity provision by central banks; the often misunderstood role of …

significant idiosyncratic elements, including the threat of an unprecedented involuntary "reintermediation" wave for banks and the …

central bank's reaction to liquidity stress gives banks incentives to invest in excessive liquidity transformation, triggering …

do they mitigate, and how large are these effects? We show that by purchasing government bonds, central banks induce …