Private Short Term Funding and ECB Unconventional Monetary Policies

Project Start:02/2016
Status:Completed
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.

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