Header

UZH-Logo

Maintenance Infos

Collateral frameworks: The open secret of central banks


Nyborg, Kjell G (2017). Collateral frameworks: The open secret of central banks. London: VoxEU, CEPR Policy Portal.

Abstract

Central banks inject money into the economy against collateral, but we know little about the terms of the exchange. This column argues that market forces or discipline have little role to play in the central bank collateral frameworks that are the foundation of the monetary and financial system. This distorts the financial system and wider economy – in the Eurozone, for example, political influence on these frameworks has created indirect bailouts of some banks and sovereigns.

Abstract

Central banks inject money into the economy against collateral, but we know little about the terms of the exchange. This column argues that market forces or discipline have little role to play in the central bank collateral frameworks that are the foundation of the monetary and financial system. This distorts the financial system and wider economy – in the Eurozone, for example, political influence on these frameworks has created indirect bailouts of some banks and sovereigns.

Statistics

Additional indexing

Item Type:Scientific Publication in Electronic Form
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Scope:Discipline-based scholarship (basic research)
Language:English
Date:24 January 2017
Deposited On:21 Sep 2023 12:27
Last Modified:06 Mar 2024 14:23
Publisher:VoxEU, CEPR Policy Portal
OA Status:Closed
Free access at:Official URL. An embargo period may apply.
Official URL:http://voxeu.org/article/how-central-bank-collateral-frameworks-distort-economy
Other Identification Number:merlin-id:14497
Full text not available from this repository.