Working Paper
The effectiveness of the non-standard policy measures during the financial crises: the experiences of the Federal Reserve and the European Central Bank
Eisenschmidt, Jens; Demiralp, Selva; Carpenter, Seth B. (2013)
A growing number of studies have sought to measure the effects of non-standard policy on bank funding markets. The purpose of this paper is to carry those estimates a step further by looking at the effects of bank funding market stress on the volume of bank lending, using a simultaneous equation approach. By separately modeling loan supply and demand, we determine how non-standard central bank measures affected bank lending by reducing stress in bank funding markets. We focus on the Federal Reserve and the European Central Bank. Our results suggest that non-standard policy measures lowered ...
Finance and Economics Discussion Series , Paper 2013-34