At the zero lower bound of the policy rate, monetary policy can still be effective through unconventional monetary policy measures and forward guidance affecting longer-term interest rates. We study whether the sensitivity of Canadian government bond yields to domestic and US macroeconomic data...

We quantify the impact of explicit Federal Open Market Committee (FOMC) policy-rate guidance used as an unconventional monetary-policy tool at the zero lower bound of the policy rate on US equity prices, as well as on the risk indicators of credit and CDS spreads, implied volatilities and US...

We examine the liquidity effects of the euro area sovereign debt crisis on euro area banks as a group, on intra-euro area financial flows and on international liquidity. The lending capacity of the euro area banking system has been much weakened, despite the remarkable growth of the operations...

The Federal Reserve re-established a swap line with the European Central Bank in response to the international liquidity stresses created by the euro area sovereign debt crisis. We examine the swap line's effectiveness in addressing these stresses in 2010–11. We find that announcements about...