The Eurosystem Collateral Framework Explained
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Author | : Kjell G. Nyborg |
Publisher | : Cambridge University Press |
Total Pages | : 345 |
Release | : 2017 |
Genre | : Business & Economics |
ISBN | : 1107155843 |
The first book-length study of the importance of collateral frameworks in monetary policy, focusing on the Eurozone and euro crisis.
Author | : Ulrich Bindseil |
Publisher | : OUP Oxford |
Total Pages | : 288 |
Release | : 2004-12-02 |
Genre | : Business & Economics |
ISBN | : 0191608475 |
The first of its kind, this book is entirely dedicated to the implementation of monetary policy. Monetary policy implementation has gone through tremendous changes over the last twenty years, which have witnessed the quiet end of 'reserve position doctrine' and the return of an explicit focus on short-term interest rates. Enthusiastically supported by Keynes and later by the monetarist school, reserve position doctrine was developed mainly by US central bankers and academics during the early 1920s, and at least in the US became the unchallenged dogma of monetary policy implementation for sixty years. The return of interest rate targeting also corresponds largely to the restoration of central banking principles established in the late 19th century. Providing a simple theory of monetary policy implementation, Bindseil goes on to explain the role of the three main instruments (open market operations, standing facilities, and reserve requirements) and reviews their use in the twentieth century. In closing, he summarizes current views on efficient monetary policy implementation.
Author | : William Arrata |
Publisher | : International Monetary Fund |
Total Pages | : 45 |
Release | : 2018-12-07 |
Genre | : Business & Economics |
ISBN | : 1484386914 |
Most short-term interest rates in the Euro area are below the European Central Bank deposit facility rate, the rate at which the central bank remunerates banks’ excess reserves. This unexpected development coincided with the start of the Public Sector Purchase Program (PSPP). In this paper, we explore empirically the interactions between the PSPP and repo rates. We document different channels through which asset purchases may affect them. Using proprietary data from PSPP purchases and repo transactions for specific (“special") securities, we assess the scarcity channel of PSPP and its impact on repo rates. We estimate that purchasing 1 percent of a bond outstanding is associated with a decline of its repo rate of 0.78 bps. Using an instrumental variable, we find that the full effect may be up to six times higher.
Author | : International Monetary Fund. Monetary and Capital Markets Department |
Publisher | : International Monetary Fund |
Total Pages | : 44 |
Release | : 2018-07-19 |
Genre | : Business & Economics |
ISBN | : 1484369483 |
The flexibility shown by the ECB/Eurosystem in adapting its framework, as required by circumstances, has helped improve funding and liquidity conditions. Compared to the situation pre-crisis, the ECB/Eurosystem has provided liquidity against a broader range of collateral and for as long as four years in terms of maturity; extended liquidity in foreign currency; conducted outright purchases of public and private sector assets (now tapering off); and reduced interest rates into negative territory. In these arrangements, policy is directed from the center, but is implemented mostly by the National Central Banks (NCBs); risks are largely shared. Market participants are complimentary about the role the ECB/Eurosystem has played in backstopping the financial system and its forward guidance on monetary policy.
Author | : European Central Bank |
Publisher | : |
Total Pages | : 26 |
Release | : 1998 |
Genre | : Clearing of securities |
ISBN | : |
Author | : Ulrich Bindseil |
Publisher | : Springer Nature |
Total Pages | : 128 |
Release | : 2021-05-18 |
Genre | : Business & Economics |
ISBN | : 3030708845 |
This open access book gives a concise introduction to the practical implementation of monetary policy by modern central banks. It describes the conventional instruments used in advanced economies and the unconventional instruments that have been widely adopted since the financial crisis of 2007–2008. Illuminating the role of central banks in ensuring financial stability and as last resort lenders, it also offers an overview of the international monetary framework. A flow-of-funds framework is used throughout to capture this essential dimension in a consistent and unifying manner, providing a unique and accessible resource on central banking and monetary policy, and its integration with financial stability. Addressed to professionals as well as bachelors and masters students of economics, this book is suitable for a course on economic policy. Useful prerequisites include at least a general idea of the economic institutions of an economy, and knowledge of macroeconomics and monetary economics, but readers need not be familiar with any specific macroeconomic models.
Author | : |
Publisher | : Routledge |
Total Pages | : 527 |
Release | : |
Genre | : |
ISBN | : 1134358938 |
Author | : Otmar Issing |
Publisher | : Centre for Economic Policy Research |
Total Pages | : 40 |
Release | : 1999 |
Genre | : Business & Economics |
ISBN | : 9781898128496 |
This paper responds to some of the questions raised by Willem Buiter in his article 'Alice in Euroland' (CEPR Policy Paper No. 1) relating to the Eurosystem's approach to transparency and accountability. In his paper Willem Buiter makes a number of specific proposals designed to enhance the ECB's transparency and accountability. In his reply, Issing states that monetary policy-makers, like anybody else, have to filter, process and structure relevant information and interpret it on the basis of a coherent frame of reasoning. This is the purpose of adopting a monetary policy strategy that serves as a guide both for internal decision-making and for external communication with the public. Therefore, he argues, transparency and accountability need to be discussed against the background of the stability-oriented monetary policy strategy that the ECB has actually adopted and not as if it were pursuing some other strategy such as direct inflation targeting.
Author | : Marc Dobler |
Publisher | : International Monetary Fund |
Total Pages | : 63 |
Release | : 2016-01-22 |
Genre | : Business & Economics |
ISBN | : 1513567780 |
The global financial crisis (GFC) has renewed interest in emergency liquidity support (sometimes referred to as “Lender of Last Resort”) provided by central banks to financial institutions and challenged the traditional way of conducting these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this paper we focus on, for the most part, the provision of idiosyncratic support, approaching it from an operational perspective; highlighting different approaches adopted by central banks; and also identifying some of the issues that arose during the GFC.
Author | : Massimo Rostagno |
Publisher | : Oxford University Press |
Total Pages | : 449 |
Release | : 2021 |
Genre | : Business & Economics |
ISBN | : 0192895915 |
The first twenty years of the European Central Bank offer a unique insight into how a central bank can navigate macroeconomic insecurity and crisis. This volume examines the structures and decision-making processes behind the complex measures taken by the ECB to tackle some of the toughest economic challenges in the history of modern Europe.