scholarly journals Liquidity Provision as a Monetary Policy Tool: The ECB's Non-Standard Measures After the Financial Crisis

2017 ◽  
Author(s):  
Dominic Quint ◽  
Oreste Tristani
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Liquidity Provision ◽  
Policy Tool

scholarly journals The Costs and Benefits of Liquidity Regulations: Lessons from an Idle Monetary Policy Tool

2021 ◽  
Author(s):  
Christopher J Curfman ◽  
John Kandrac
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Costs And Benefits ◽  
High Quality ◽  
Liquid Asset ◽  
Lower Odds ◽  
Credit Supply ◽  
Policy Tool ◽  
Regression Kink Design ◽  
Liquidity Regulation

Abstract We investigate how liquidity regulations affect banks by examining a dormant monetary policy tool that functions as a liquidity regulation. For causal inference, we use a regression kink design that relies on the variation in a marginal high-quality liquid asset requirement around an exogenous threshold. We show that mandated increases in liquidity cause banks to reduce credit supply. Liquidity requirements also depress banks’ profitability, though some of the regulatory costs are passed on to liability holders. We document a prudential benefit of liquidity requirements by showing that banks subject to a higher requirement just before the financial crisis had lower odds of failure.

scholarly journals Non-Standard Measures of the Monetary Policy – Mechanism for Overcoming Problems in the Implementation of the Neoliberal Concept of Monetary Policy During a Financial Crisis

2017 ◽  
Vol 55 (4) ◽  
pp. 465-480
Author(s):  
Andriana Milošević ◽  
Mirjana Jemović
Keyword(s):  
Monetary Policy ◽  
Interest Rate ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Policy Instruments ◽  
Developed Countries ◽  
Central Banks ◽  
Liquidity Provision

AbstractAfter multiple decreases in the reference interest rate and its reaching zero bounds in certain countries during the recent global financial crisis, central banks in developed countries have started applying non-standard measures of monetary policy. This does not refer to introducing new monetary policy instruments, but rather to a certain relativisation within the framework of standard instruments, in terms of maturity of liquidity provision, collateral policy and counterparties. Therefore, the aim of this paper is to examine the role of non-standard measures of monetary policy as a mechanism for overcoming problems in the implementation of the neoliberal concept of monetary policy in the conditions of the financial crisis. The answer to this question is rather sensitive, considering the fact that the neoliberal concept was supported by the most developed countries, that is, in fact, their central banks were using non-standard instruments of monetary policy for the greatest part.

Transparency of Monetary Policy in the Postcrisis World

2019 ◽  
pp. 286-334
Author(s):  
Nergiz Dincer ◽  
Barry Eichengreen ◽  
Petra Geraats
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Information Disclosure ◽  
Global Financial Crisis ◽  
Central Banks ◽  
Forward Guidance ◽  
Policy Tool ◽  
The Us ◽  
The Global Financial Crisis ◽  
Monetary Policy Transparency

This chapter analyzes whether and to what extent central banks have continued to be more transparent in their conduct of monetary policy in the postcrisis period. It presents a monetary policy transparency index, that measures the degree of information disclosure about various aspects of the policymaking process for 112 central banks from 1998 until 2015. Compared to previous research, the index has been updated, revised and refined to better capture developments since the global financial crisis, with and explicit focus on monetary policy, more emphasis on the timely disclosure of information, and greater granularity, including for forward guidance. The development and challenges of increasing monetary policy transparency are further analyzed in case studies of the European Central Bank, the US Federal Reserve and the Bank of England, which illustrate how these prominent central banks have deployed greater transparency as a policy tool in the aftermath of the financial crisis.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

Normative dimensions of central banking: How the guardians of financial markets affect justice

2017 ◽  
Author(s):  
Peter Dietsch
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Financial Markets ◽  
Central Banking ◽  
Democratic Legitimacy ◽  
Policy Agenda ◽  
Theory Of Justice ◽  
Introductory Section ◽  
The Impact

Monetary policy, and the response it elicits from financial markets, raises normative questions. This chapter, building on an introductory section on the objectives and instruments of monetary policy, analyzes two such questions. First, it assesses the impact of monetary policy on inequality and argues that the unconventional policies adopted in the wake of the financial crisis exacerbate inequalities in income and wealth. Depending on the theory of justice one holds, this impact is problematic. Should monetary policy be sensitive to inequalities and, if so, how? Second, the chapter argues that the leverage that financial markets have today over the monetary policy agenda undermines democratic legitimacy.

Conclusions

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Monetary Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Quantitative Easing ◽  
Unconventional Monetary Policy ◽  
Advanced Economies ◽  
The Global Financial Crisis ◽  
Zero Bound

The preceding chapters have examined the deepened integration of emerging and developing economies (EDEs) into the international financial system in the new millennium and their changing vulnerabilities to external financial shocks. They have discussed the role that policies in advanced economies played in this process, including those that culminated in the global financial crisis and the unconventional monetary policy of zero-bound interest rates and quantitative easing adopted in response to the crisis, as well as policies in EDEs themselves....

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