Central bank balance sheet expansion, through actions like quantitative easing, is run
through commercial banks. While this increases liquid central bank reserves held on …

Years have passed since the world experienced one of the worst financial crises in history,
and while countless experts have analyzed it, many central questions remain unanswered …

This paper investigates the impact of ample liquidity provision by the European Central Bank
on the functioning of the overnight unsecured interbank market from 2008 to 2014. We use …

America's system of money and banking is broken. Another interest rate tightening cycle has
precipitated yet another round of financial instability. On March 10, 2023, with …

We assess from a financial stability standpoint the effectiveness of two significant
interventions of the European Central Bank (ECB) during the sovereign debt crisis. By being …

We examine the financial conditions of dealers that participated in two of the Federal
Reserve's lender-of-last-resort (LOLR) facilities—the Term Securities Lending Facility (TSLF) …

Measures of sovereign and bank risk show occasional bouts of increased correlation, setting
the stage for vicious and virtuous feedback loops. This paper models the macroeconomic …

We document the mechanism through which the risk of fire sales in the sovereign bond
market contributed to the effectiveness of two major central bank interventions designed to …

During the 2007–2008 financial crisis several banking systems suffered shortages in US
dollars. The liquidity crisis of these banking systems was overcome thanks to the successful …

In summer 2011, elevated sovereign risk in Eurozone peripheral countries increased the
solvency risk of Eurozone banks, precipitating a run on their short-term debt. We assess the …