Abstract After the Great Recession several central banks started setting negative nominal
interest rates in an expansionary attempt, but the effectiveness of this measure remains …

We develop a tractable model of banks' liquidity management with an over‐the‐counter
interbank market to study the credit channel of monetary policy. Deposits circulate randomly …

Basel III uses the gap between the credit-to-GDP ratio and its long-term trend as a guide for
setting countercyclical capital buffers. Criticism of this choice centres on three areas:(i) the …

Capital requirements are the cornerstone of modern bank regulation, yet little is known
about their welfare cost. This paper measures this cost and finds that it is surprisingly large. I …

The response of major central banks to the global financial crisis has revived the debate
around the interactions between monetary policy (MP) and bank stability. This technical …

Negative interest rate policy (NIRP) is associated with a particular friction. The remuneration
of banks´ retail deposits tends to be floored at zero, which limits the transmission of policy …

This article presents empirical evidence of a reserve-induced transmission channel of
quantitative easing to long-term interest rates. Reserve-induced effects are independent of …

We empirically test early monetary theories in which reserve creation plays a crucial role in
the transmission of quantitative easing (QE). Analyzing the unprecedented injection of …

The study of quantitative easing (QE) policies has so far focussed on which assets the
central bank should buy, and on how it can pursue its targets for real and financial stability …

The Regional Economist| www. stlouisfed. org 5 explained by factors as simple as firms'
growth, an increasing number of firms in the sample or inflation. To control for those factors …