Central-bank collateral policy governs the convertibility of assets into central-bank money provided directly by the … central bank. Focusing on government bonds, we develop clean identification of variation in such convertibility by exploiting …-curve modeling on four separate events, we show that reduced convertibility lifts yields, but with the effect tapering off at longer …

Central banks normally accept debt of their own governments as collateral in liquidity operations without reservations …. This gives rise to a valuable liquidity premium that reduces the cost of government finance. The ECB is an interesting … ratings, to determine eligibility and the haircut it imposes on such debt. We show how such features in a central bank …

Central banks normally accept debt of their own governments as collateral in liquidity operations without reservations …. This gives rise to a valuable liquidity premium that reduces the cost of government finance. The ECB is an interesting … ratings, to determine eligibility and the haircut it imposes on such debt. We show how such features in a central bank …

Central banks normally accept debt of their own governments as collateral in liquidity operations without reservations …. This gives rise to a valuable liquidity premium that reduces the cost of government finance. The ECB is an interesting … ratings, to determine eligibility and the haircut it imposes on such debt. The authors show how such features in a central …