This paper looks at the relevance of a central bank's own finances for its policy work. Some central banks are exposed … the effectiveness of central bank policy transmission. Against this backdrop, the paper analyses the determinants of a … central bank's financial position and the possible implications of insufficient financial resources for policymaking. It also …

. In normal recessions, firm and bank net worth play the same role, so their sum determines the allocation of capital …. During financial crises, shocks to bank net worth have an additional effect beyond that in standard financial frictions … bank net worth during the Great Recession. Finally, the model is consistent with the different dynamics of the share of …

changes in the financial conditions index of the Federal Reserve Bank of Chicago. Findings indicate that a typical EME …