the initial shock; and (iii) asset purchases and central bank long-term refinancing operations can be effective …

the initial shock; and (iii) asset purchase policies and long-term refinancing operations can both be successful in …

We study liquidity transfers between banks through the interbank borrowing and asset sale markets when, (i) surplus …) compared to outside markets, or is prepared to extend potentially loss-making loans. The public provision of liquidity to banks …, in fact its mere credibility, can thus improve the private allocation of liquidity among banks. This rationale for …