The first version of this book was published in 1992 as Foundations of Post-Keynesian
Economic Analysis. Ten years later, in 2002, I was asked to write a new edition; in fact …

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 …

We develop a model of the market for federal funds that explicitly accounts for its two
distinctive features: banks have to search for a suitable counterparty, and once they meet …

The quantity of reserves in the US banking system has risen dramatically since Sept. 2008.
This pattern may indicate that the Federal Reserve¿ s (FR) liquidity facilities have been …

Extreme disruptions in the interbank market severely hampered the broader financial system
during the 2007–08 financial crisis. We use Fedwire data to estimate fed funds trades and …

To combat the financial crisis that intensified in the fall of 2008, the Federal Reserve injected
a substantial amount of liquidity into the banking system. The resulting increase in reserve …

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 …

Most short-term interest rates in the euro area are below the European Central Bank deposit
facility rate, the rate at which the central bank remunerates banks for excess reserves. This …

We study the impact of the Basel III liquidity coverage ratio (LCR) on interbank interest rates
in an otherwise-standard model of monetary policy implementation. When banks face the …

Monetary policy becomes real through financial operations of the central bank with the rest
of the world—and in particular with financial institutions.“Signaling” or “open mouth …