Title of article :
Interbankmarketliquidityandcentralbankintervention$
Author/Authors :
FranklinAllen، نويسنده ,
Issue Information :
روزنامه با شماره پیاپی سال 2008
Abstract :
Wedevelopasimplemodeloftheinterbankmarketwherebankstradealongterm,safe
asset.Whenthereisalackofopportunitiesforbankstohedgeidiosyncraticand
aggregate liquidityshocks,theinterbankmarketischaracterizedbyexcessiveprice
volatility.Insuchasituation,acentralbankcanimplementtheconstrainedefficient
allocationbyusingopenmarketoperationstofixtheshortterminterestrate.Itcan
be constrainedefficientforbankstohoardliquidityandstoptradingwitheachother
if thereissufficientuncertaintyaboutaggregateliquiditydemandcomparedto
idiosyncraticliquiditydemand.
Keywords :
Open marketoperationsConstrained efficiency
Journal title :
Journal of Monetary Economics
Journal title :
Journal of Monetary Economics
