Does central bank collateral policy contribute to financial market integration? We address this question by exploiting … that, in 2007, the European Central Bank replaced national collateral frameworks by a single list. Under the single list … regime, euro area banks could pledge all euro area bank loans as collateral, not only domestic loans as before the framework …

This paper investigates contagion in financial networks through both debt and collateral markets. Payment from a … collateralized debt contract depends not only on the borrower's balance sheet but also on the price of the underlying collateral. I … show that the existence of the collateral channel of contagion amplifies the contagion from the counterparty channel, and …

, or a centralized counterparty (such as an exchange) that observes all trades and sets prices. While collateral …

the EMU. -- monetary union ; inflation ; differentials ; collateral constraints ; cross-country heterogeneity ; household …

to smooth consumption over time and because they provide collateral and liquidity services. We characterize a recursive … and contemporaneous costs due to lost collateral and liquidity are essential to generate these empirically plausible …

role of the bubble, used to provide liquidities or as collateral in a borrowing constraint. In this paper, we introduce … when the borrowing constraint is binding. More significantly, our results do not depend on the - liquidity or collateral … probability. Because credit and bubble are no more perfectly substitutable assets, the liquidity and collateral roles of the …