TY  - JOUR
U1  - Zeitschriftenartikel, wissenschaftlich - begutachtet (reviewed)
A1  - Herzog, Bodo
T1  - Liquidity management at the zero lower bound and an era of activism in central banking
JF  - Journal of mathematical finance
N2  - The paper studies liquidity management in the banking sector at the zero lower bound implemented by central banks. The new era of monetary policy with interest rates at zero and quantitative easing programs raise questions about the effectiveness of central banking policy and their impact on the banking sector. I find that the zero lower bound reduces liquidity reserves of banks and thus creates less credit supply. The T-LTRO program, developed by the European Central Bank, has helped to tackle this problem. However, the recently expanded asset purchase program reveals the opposite effect. Hence, the recent liquidity provisions by central banks have put incentives rather on de-leveraging than bank lending.
KW  - liquidity management
KW  - money supply
KW  - monetary activism
KW  - central banking
Y1  - 2016
UN  - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-11122
SN  - 2162-2434
SS  - 2162-2434
U6  - https://doi.org/10.4236/jmf.2016.61006
DO  - https://doi.org/10.4236/jmf.2016.61006
VL  - 6
IS  - 1
SP  - 48
EP  - 54
S1  - 7
PB  - Scientific Research Publishing
ER  -