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 …

area. In a structural VAR, we identify a liquidity shock rooted in the interbank market and use its impulse response … Gertler and Kiyotaki (2010). We highlight two main results. First, an identified liquidity shock causes a sizable and … persistent fall in investment. The shock can account for one third of the observed, large fall in euro area aggregate investment …

area. In a structural VAR, we identify a liquidity shock rooted in the interbank market and use its impulse response … Gertler and Kiyotaki (2010). We highlight two main results. First, an identi.ed liquidity shock causes a sizable and … persistent fall in investment. The shock can account for one third of the observed, large fall in euro area aggregate investment …