Monetary policy in a systemic crisis

Welcome to the UPF Digital Repository

Freixas, Xavier. Monetary policy in a systemic crisis. 2009
To cite or link this document: Freixas, Xavier
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa 2009-11-01
dc.description.abstract This paper examines the monetary policy followed during the current financial crisis from the perspective of the theory of the lender of last resort. It is argued that standard monetary policy measures would have failed because the channels through which monetary policy is implemented depend upon the well functioning of the interbank market. As the crisis developed, liquidity vanished and the interbank market collapsed, central banks had to inject much more liquidity at low interest rates than predicted by standard monetary policy models. At the same time, as the interbank market did not allow for the redistribution of liquidity among banks, central banks had to design new channels for liquidity injection.
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1200
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.title Monetary policy in a systemic crisis
dc.type info:eu-repo/semantics/workingPaper 2014-06-03T07:14:25Z
dc.subject.keyword Finance and Accounting
dc.rights.accessRights info:eu-repo/semantics/openAccess

See full text
This document is licensed under a Creative Commons license:


Advanced Search


My Account