How does the ECB allot liquidity in its weekly main refinancing operations?

This paper provides a simple weekly model of the regular supply of liquidity in the euro area, with a view to understanding the functioning of the euro area money market. The main result of the analysis is that liquidity has normally been provided by the ECB in a neutral and smooth manner, but also that there has been some attempt, albeit very limited, to correct deviations of the overnight rate from the main refinancing rate. Moreover the paper finds that liquidity has affected the overnight interest rate to a significant extend only after the last main refinancing operation of the maintenance period, when it is not possible for the ECB to adjust liquidity imbalances except by making recourse to fine-tuning operations.

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Alternative title:	A look at the empirical evidence
Year of publication:	2003-07-01
Authors:	Ejerskov, Steen ; Moss, Clara Martin ; Stracca, Livio
Publisher:	European Central Bank
Subject:	Bankenliquidität \| Bank liquidity \| EU-Staaten \| EU countries \| Geldpolitik \| Monetary Policy \| Liquiditätseffekt \| Liquidity effect \| Martingale \| Zentralbank \| Central Bank \| EU \| Europäische Zentralbank \| European Central Bank \| monetary policy \| Liquidität \| liquidity

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Extent:	532480 bytes 51 p. application/pdf
Series:	The European Central Bank - Working papers review
Type of publication:	Book / Working Paper
Language:	English
Classification:	E43 - Determination of Interest Rates; Term Structure Interest Rates ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G21 - Banks; Other Depository Institutions; Mortgages ; Macroeconomics. Other ; Monetary Policy ; EU ; Currency. Monetary policy ; Individual Working Papers, Preprints
Source:	ArchiDok