We reconsider the design of welfare-optimal monetary policy when financing frictions impair the supply of bank credit …

This study examined the nexus between monetary policy and the achievement of a bank's profit objective. There have been … lots of arguments about the benefits of monetary policy implementation on deposit money bank's operations, since the … Liquidity Ratio, Interest and Money supply (M2), which are used as monetary policy instruments, on deposit money bank …

This paper studies the term premium in a general equilibrium model with a financial constraint and central bank asset …

bank. We develop a sticky price model where money serves as the means of payment and ex-ante identical agents borrow … is amplified under higher nominal interest rates. We show that the central bank cannot implement first best and that … optimal monetary policy mainly aims at stabilizing prices. We further demonstrate that central bank purchases of loans can …

-rich banks may increase when the interest rate paid on excess reserves increases strongly. Focusing on the European Central Bank …

We analyze the impact of introducing a central bank-issued digital currency (CBDC) on the operational framework of … frictional interbank market, a central bank with deposit and lending facilities, and household preferences for different liquid …" has a rather small effect on bank lending to the real economy, and hence on aggregate investment and GDP. This result …

We identify the effects of negative interest rate policies on bank behavior using difference-in differences … mortgage margins is shown to depend on market power. Third, imposing negative rates on all central bank reserves causes banks …