Publication:
The effectiveness of non-standard monetary policy in addressing liquidity risk during the financial crisis: the experiences of the Federal Reserve and the European Central Bank

Placeholder

Departments

School / College / Institute

Program

KU-Authors

KU Authors

Co-Authors

Carpenter, Seth
Eisenschmidt, Jens

Publication Date

Language

Embargo Status

Journal Title

Journal ISSN

Volume Title

Alternative Title

Abstract

A number of studies sought to measure the effects of non-standard policy on bank funding markets. This paper carries those estimates a step further by looking at the effects of bank funding market stress on the volume of bank lending. By separately modeling loan supply and demand, we determine how non-standard central bank measures affected bank lending by reducing stress in bank funding markets. Our results suggest that non-standard policy measures lowered bank funding volatility in the US and the Euro Area. Lower bank funding volatility in turn increased loan supply in both regions, contributing to sustained lending activity. (C) 2014 Elsevier B.V. All rights reserved.

Source

Publisher

Elsevier

Subject

Economics

Citation

Has Part

Source

Journal of Economic Dynamics & Control

Book Series Title

Edition

DOI

10.1016/j.jedc.2014.03.005

item.page.datauri

Link

Rights

Copyrights Note

Endorsement

Review

Supplemented By

Referenced By

0

Views

0

Downloads

View PlumX Details