Illiquidity and Interest Rate Policy

By Douglas W. Diamond, Raghuram G. Rajan. 2009

157 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/0d855cbfc4029a72068e3d5df5438cd8d93c40f1

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Citations in the corpus

Trusting the Bankers: A New Look at the Credit Channel of Monetary Policy (2015, unknown): “…used to analyze the transmission channels, we study how the different shocks have impacted aggregate output during the crisis by analyzing potential credit crunches, their real implications, and the effect of monetary policy measures (Diamond and Rajan, 2009; Gertler and Kiyotaki, 2009).”
Financial Stability and Monetary Policy: How Closely Interlinked? (2014, background): “35See also Allen and Gale (2007), Diamond and Rajan (2009), and Acharya and Naqvi (2010). interact and strengthen each other (as in Brunnermeier and Pedersen 2009).36 In light of the review of developments in the euro area in section 2, one of the most interesting pieces of research is a series of…”
Financial crises, bank risk exposure and government financial policy (2012, background): “Recent examples that emphasize this kind of time consistency problem include Diamond and Rajan (2009), Fahri and Tirole.”
Bank Risk-Taking, Securitization, Supervision and Low Interest Rates: Evidence from the Euro Area and the U.S. Lending Standards (2010, unknown): “…in banking (due to bail-outs and liquidity assistance), low interest rates may induce banks to soften their lending standards by improving banks’ liquidity (Allen and Gale, 2007; Diamond and Rajan, 2009a; Acharya and Naqvi, 2010) and net worth (Adrian and Shin, 2010; Stiglitz and Greenwald, 2003).”
Liquidity Hoarding and Interbank Market Spreads: The Role of Counterparty Risk (2009, unknown): “In Diamond and Rajan (2009), illiquidity can depress lending and low prices for illiquid assets go hand in hand with high returns on holding liquidity.”
Does Monetary Policy Affect Bank Risk-Taking? (2010, unknown): “The drop in the EDF is 17 ECB Working Paper Series No 1166 March 2010 probably reinforced by the reduction in bank funding liquidity cost after the decrease in short-term monetary interest rates (Diamond and Rajan, 2009; Adrian and Shin, 2009a).”
Monetary Policy, Leverage, and Bank Risk-Taking (2010, background): “More recently, Farhi and Tirole (2009) and Diamond and Rajan (2009) have examined the role of macro bailouts and collective moral hazard on banks liquidity decisions.”
Does monetary policy affect bank risk (2014, background): “For this reason, Diamond and Rajan (2009) argue that in good times monetary policy should be kept tighter than strictly necessary based on economic conditions existing at the time, in order to diminish banks’ incentives to take on liquidity risk.6 Turning to the empirical evidence, there are a…”
Interbank market liquidity and central bank intervention (2009, unknown): “(1998), Gorton and Huang (2004, 2006), Diamond and Rajan (2005, 2008) , and Acharya”
The effectiveness of unconventional monetary policy at the zero lower bound : a cross-country analysis (2014, unknown): “[23] Diamond, D.”