scholarly journals Unconventional Monetary Policy and Funding Liquidity Risk

2020 ◽  
Author(s):  
Adrien d'Avernas ◽  
Quentin Vandeweyer ◽  
Matthieu Darracq Paries
Keyword(s):  
Monetary Policy ◽  
Liquidity Risk ◽  
Unconventional Monetary Policy ◽  
Funding Liquidity

Sooner or Later: Timing of Monetary Policy with Heterogeneous Risk-Taking

2016 ◽  
Vol 106 (5) ◽  
pp. 490-495 ◽  
Author(s):  
Dong Beom Choi ◽  
Thomas M. Eisenbach ◽  
Tanju Yorulmazer
Keyword(s):  
Monetary Policy ◽  
Risk Taking ◽  
Heterogeneous Agents ◽  
Liquidity Risk ◽  
Unconventional Monetary Policy ◽  
Targeted Interventions ◽  
Ex Post ◽  
Ex Ante ◽  
Discount Window ◽  
Transmission Of Monetary Policy

We analyze the effects and interactions of monetary policy tools that differ in terms of their timing and their targeting. In a model with heterogeneous agents, more productive agents endogenously expose themselves to higher interim liquidity risk by borrowing and investing more. Two inefficiencies impair the transmission of monetary policy: an investment- and a hoarding inefficiency. Heterogeneous agents respond disparately to ex-ante, conventional and ex-post, unconventional monetary policy. However, we show that the two policies are equivalent due to the endogeneity of hoarding. In contrast, targeted interventions such as discount-window lending can alleviate both inefficiencies at the same time.

Funding Liquidity Risk and the Dynamics of Hedge Fund Lockups

2016 ◽  
Author(s):  
Adam L. Aiken ◽  
Christopher P. Clifford ◽  
Jesse A. Ellis ◽  
Qiping Huang
Keyword(s):  
Hedge Fund ◽  
Liquidity Risk ◽  
Funding Liquidity
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