Alternative central bank credit policies for liquidity provision in a model of payments
نویسندگان
چکیده
منابع مشابه
Alternative central bank credit policies for liquidity provision in a model of payments
I explore alternative central bank policies for liquidity provision in a model of payments. I use a mechanism design approach so that agents’ incentives to default are explicit and contingent on the credit policy designed. In the first policy, the central bank invests in costly enforcement and charges an interest rate to recover costs. I show that the second-best solution is not distortionary. ...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2006
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2005.05.008