their interbank exposures. The micro-founded framework allows inter alia for endogenous bank defaults and bank capital … requirements. In addition, we introduce a central bank who intervenes directly in the interbank market through liquidity injections … the remaining structures show a non-negligible shock propagation mechanism. Finally, we show that central bank …

of idiosyncratic liquidity shocks - arising from deposits outflow at the bank level - and of the aggregate liquidity … during idiosyncratic liquidity shocks, while central bank liquidity contributes to smooth the impact of aggregate liquidity …

and the optimal policy of a central bank in response to both idiosyncratic and aggregate shocks. In particular, we … consider how the interbank market affects a bank's choice between holding liquid assets ex ante and acquiring such assets in … the market ex post. We show that a central bank should use different tools to manage different types of shocks …

We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its … that a bank’s willingness-to-pay is a good indicator for the probability that this bank draws on the LOLR facility. Our …

Zentralbankgeld wird vielfach die größte Herausforderung der Geldpolitik gesehen. Im gleichen Jahr führte das ESZB ein neues System … TARGET-Systems der Versuch, die Effektivität der Geldpolitik zu verbessern, indem die Nachfrage nach Zentralbankgeld …