Sviatlana Hlebik, Giovanni Verga


In 2008 the European Central Bank added a new quantitative policy strategy to its traditional control of the interest rates. This new policy, sometimes called “enhanced credit support”, consisted of fully satisfying the demand for liquidity of banks, with the European Central Bank deciding only the timing and characteristics of its interventions. This study analyses the market conditions in which these measures have been taken and their consistency with the demand for liquidity by the banking system, along with the determinants of the interbank interest rates. The latest 2014-15 non-standard operations are not analysed here.

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European Central Bank, financial crisis, liquidity supply, liquidity demand

JEL Codes

E52, E4, G21


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