accounting for the large degree of heterogeneity in the euro area banking sector in analyses of the effectiveness of monetary …

using an estimated non-linear DSGE model with a banking sector and long-term private and public debt for the United States …. We find that the benefits of using such UMP in normal times are substantial, equivalent to 1.45 percent of consumption …. However, the benefits of using UMP are shock-dependent and mostly arise when the economy is hit by financial shocks. By …

bonds, and households face transaction costs when trading government bonds. Such frictions in the banking sector induce … rate. In terms of macroeconomic stabilisation, optimal asset purchase strategies deliver sizeable benefits and have the …

enhancing than asset purchases following a financial shock located in the banking sector. Equity injections remove the frictions …

market and (ii) that the willingness-to-pay can serve as an early warning indicator for banking distress. …

’ balance sheets attenuate the amplification of shocks resulting from financial frictions in the banking sector. …

the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as …