Monetary policy in a systemic crisis

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Freixas, Xavier. Monetary policy in a systemic crisis. 2009
http://hdl.handle.net/10230/6058
To cite or link this document: http://hdl.handle.net/10230/6058
dc.contributor.author Freixas, Xavier
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.issued 2009-11-01
dc.identifier.uri http://hdl.handle.net/10230/6058
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.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Monetary policy in a systemic crisis
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2014-06-03T07:14:25Z
dc.subject.keyword Finance and Accounting
dc.rights.accessRights info:eu-repo/semantics/openAccess


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