The Daily Market for Funds in Europe: What has Changed with the EMU?
Gabriel Pérez-Quirós and
Hugo Rodriguez Mendizabal ()
Authors registered in the RePEc Author Service: Gabriel Perez Quiros
No 22, Working Papers from Barcelona Graduate School of Economics
This paper presents evidence that the existence of deposit and lending facilities combined with an averaging provision for the reserve requirement are powerful tools to stabilize the overnight rate. We reach this conclusion by comparing the behavior of this rate in Germany before and after the start of the EMU. The analysis of the German experience is useful because it allows to isolate the effects on the overnight rate of these particular instruments of monetary policy. To show that this outcome is a general conclusion and not a particular result of the German market, we develop a theoretical model of reserve management which is able to reproduce our empirical findings.
Keywords: Overnight Rates; reserve demand; martingale hypothesis (search for similar items in EconPapers)
JEL-codes: E44 E52 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Journal Article: The Daily Market for Funds in Europe: What Has Changed with the EMU? (2006)
Working Paper: The Daily Market for Funds in Europe: What Has Changed with the EMU? (2003)
Working Paper: The daily market for funds in Europe: what has changed with the EMU (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:22
Access Statistics for this paper
More papers in Working Papers from Barcelona Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Bruno Guallar ().