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Firm heterogeneity and the transmission of central bank credit policy

Kuhmann, Konrad - 2023

I study the role of firm heterogeneity for the transmission of unconventional monetary policy in the form of "credit policy" à la Gertler and Karadi (2011). To this end, I lay out a Two-Agent New-Keynesian model with financially constrained and unconstrained firms and a financial intermediary...

Persistent link: https://www.econbiz.de/10014234463

Effects of the ECB's communication on government bond spreads

Camarero Garcia, Sebastian; Neugebauer, Frederik; … - 2023

This paper investigates the financial market effects of the ECB's communication on the Pandemic Emergency Purchase … press releases, ECB blog contributions, speeches and interviews on changes in government bond spreads. Second, we assess … whether spreads react differently to communication by specific ECB Executive Board members. Markets turn out to be sensitive …

Persistent link: https://www.econbiz.de/10014330976

Liquidity provision as a monetary policy tool : the ECB's non-standard measures after the financial crisis

Quint, Dominic; Tristani, Oreste - 2017

in 2008–09. Second, the liquidity injected in the market by the ECB played an important role in attenuating the … macroeconomic impact of the shock. According to our counterfactual simulations based on the structural model, in the absence of ECB …

Persistent link: https://www.econbiz.de/10011764878

Fire buys of central bank collateral assets

Roure, Calebe de - 2017

In times of financial distress, central banks provide unlimited liquidity to avoid fire sales. In response, banks raise their demand for collateral assets, and the short-term scarcity of collateral securities leads to higher prices, the Fire Buy premium. To avoid collateral scarcity, central...

Persistent link: https://www.econbiz.de/10011587096

The financial market effects of the ECB's asset purchase programs

Lewis, Vivien; Roth, Markus - 2017

The European Central Bank's asset purchase programs, while intended to stabilize the economy, may have unintended side effects on financial stability. This paper aims at gauging the effects on financial markets, the banking sector, and lending to non-financial firms. Using a structural vector...

Persistent link: https://www.econbiz.de/10011712553

Collateral scarcity and market functioning : insights from the eurosystem securities lending facilities

Greppmair, Stefan; Jank, Stephan - 2023

We utilize the Eurosystem securities lending facilities as a laboratory to investigate the impact of collateral scarcity on market functioning. The reduction of securities lending fees, implemented in November 2020, provides a natural experiment for our analyses. This policy change results in a...

Persistent link: https://www.econbiz.de/10014435510

The effectiveness of monetary policy in steering money market rates during the financial crisis

Abbassi, Puriya; Linzert, Tobias - 2012

ECB’s non-standard monetary policy measures as of October 2008 were effective in addressing the disruptions in the euro …

Persistent link: https://www.econbiz.de/10009564491

Monetary transmission right from the start : the (dis)connection netween the money market and the ECB’s main refinancing rates

Abbassi, Puriya; Nautz, Dieter - 2010

The relation between the ECB's main refinancing (MRO) rates and the money market is key for the monetary transmission … allotment policy introduced by the ECB as an unconventionalmeasure to re-stabilize banks' refinancing conditions. -- Financial …

Persistent link: https://www.econbiz.de/10003962841

A note of caution on quantifying banks' recapitalization effects

Schmidt, Kirsten; Noth, Felix; Tonzer, Lena - 2021

Unconventional monetary policy measures like asset purchase programs aim to reduce certain securities' yield and alter financial institutions' investment behavior. These measures increase the institutions' market value of securities and add to their equity positions. We show that the extent of...

Persistent link: https://www.econbiz.de/10012426421

The financial instability - monetary policy nexus : evidence from the FOMC minutes

Kanelis, Dimitrios; Kranzmann, Lars H.; Siklos, Pierre L. - 2025

We analyze how financial stability concerns discussed during Federal Open Market Committee (FOMC) meetings influence the Federal Reserve's monetary policy imple- mentation and communication. Utilizing large language models (LLMs) to analyze FOMC minutes from 1993 to 2022, we measure both...

Persistent link: https://www.econbiz.de/10015410650