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In this paper we investigate whether monetary aggregates could play a role as either intermediate targets or indicators of the single monetary policy of the European Central Bank (ECB). To this end we estimate money demand functions for the European Economic and Monetary Union and test for their...
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The excess liquidity in the euro area is a product of a long period of quantitative easing. It changed the operational …
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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...
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indicate an increase, over recent years, in the level of excess liquidity required in the euro area to avoid a rise in short …
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indicate an increase, over recent years, in the level of excess liquidity required in the euro area to avoid a rise in short …
Persistent link: https://www.econbiz.de/10012627189
(CBDC) in the euro area and proposes a possible design of a digital euro that allows for instant offline payments. Cash … regulations and supply-side restrictions by commercial banks. Nonetheless, overall demand for euro cash remained strong and even … consumer perspective, the digital euro will rather co-circulate with cash than replace it in transactions. …
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