bank. We develop a sticky price model where money serves as the means of payment and ex-ante identical agents borrow … is amplified under higher nominal interest rates. We show that the central bank cannot implement first best and that … optimal monetary policy mainly aims at stabilizing prices. We further demonstrate that central bank purchases of loans can …

welfare implications of different LOLR-policies in these financial systems. We show that in a bank-dominated financial system …

We show that a reduction in lender of last resort (LOLR) policy uncertainty posi-tively affects bank lending and … privatemarket and central bank security valuations - plays a key role in the propagation ofthe shock to lending and the real economy. …

relied on Section 13(3) to authorize its controversial lending actions with respect to Bear Stearns, AIG, Citigroup and Bank … financial institutions and central banks through the creation of the Term Auction Facility and Central Bank Swap Facility …

We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …

its lending and deposit facilities the central bank has an additional effective instrument at its disposal to impose an … impact on bank loan supply. Lowering the rate on the deposit facility has, taken for itself, a contractionary effect. This …

its lending and deposit facilities the central bank has an additional effective instrument at hand to impose an impact on … bank loan supply. While lowering the rate on the lending facility has, taken for itself, an expansionary effect, lowering …

build a two-agent New Keynesian model with conventional monetary policy and central bank asset purchases to quantitatively … purchases are very persistent or when the central bank follows a strict inflation target. On the other hand, expansionary …