It is widely argued that shadow banking grew rapidly before the recent financial crisis
because of rising demand for “money-like” claims. This paper assesses a key premise of this …

Central bank collateral frameworks are an often overlooked feature of monetary policy that
play a key role in the monetary and financial system. Readers will discover how central …

Many central banks implement monetary policy in a way that maintains a tight link between
the stock of money and the short-term interest rate. In particular, their implementation …

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 …

We model the impact of bank mergers on loan competition, reserve holdings, and aggregate
liquidity. A merger changes the distribution of liquidity shocks and creates an internal money …

Despite constituting the very heart of the monetary transmission mechanism, widespread
misconceptions still exist regarding how monetary policy is implemented. This paper …

Central banks no longer set the short-term interest rates that they use for monetary policy
purposes by manipulating the supply of banking system reserves, as in conventional …

This paper seeks to inform about a feature of monetary policy that is largely overlooked, yet
occupies a central role in modern monetary and financial systems, namely central bank …

Since the mid-1990s, the national income and product accounts personal saving rate for the
United States has been trending down, dropping into negative territory for three months …

Abstract When the Federal Reserve expanded its balance sheet via large-scale asset
purchases (quantitative easing) in recent years, we find an increase in commercial bank …