|Researchers:||Viral Acharya, Diane Pierret, Sascha Steffen|
|Category:||Financial Markets, Macro Finance|
|Funded by:||Volkswagen Stiftung|
The project team investigates the unconventional monetary policy intervention of the ECB on asset prices and private short-term funding of European banks during the sovereign debt crisis. We investigate the behavior of U.S. money market funds that removed unsecured funding from risky banks during summer 2011, and increased unsecured and repo funding to low risk non-Eurozone banks. The team members will analyze whether funding pressure was mitigated after the unconventional monetary policy intervention of the ECB, such as LTRO and OMT.