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 show that the likelihood of a liquidity crunch in wholesale US dollar funding markets
depends on levels of reserve balances at the financial institutions that are the most active …

We estimate the effects of quantitative easing (QE) measures by the ECB and the Federal
Reserve on the US dollar-euro exchange rate at frequencies and horizons relevant for …

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 …

A model of money, credit, and banking is constructed in which the differential pledgeability of
collateral and the scarcity of collateralizable wealth lead to a term premium–an upward …

Does the federal funds rate respond to shocks when aggregate reserves are in the trillions of
dollars? Has banks' demand for reserves moved over time? We provide a structural time …

We quantify the scarcity value of Treasury collateral by estimating the impact of security-
specific demand and supply factors on the specific collateral repurchase agreement (repo) …

A two-sector general equilibrium banking model is constructed to study the functioning of a
floor system of central bank intervention. Only retail banks can hold reserves, and these …

Twice in a brief 12-year period between 2008 and 2020, central banks turned to asset
purchase programs to combat a global economic downturn. While balance sheet …

We propose a model of post‐Great Financial Crisis (GFC) money markets and monetary
policy implementation. In our framework, capital regulation may deter banks from …