Footnote:
In: Journal of Money, Credit, and Banking, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 30, 2017 erstellt
Description:
In response to the 2008-2009 crisis, faced with distressed financial intermediaries, the ECB embarked in longer-term refinancing operations (LTROs) with full allotment. Using an estimated DSGE model with a frictional banking sector, we find that such liquidity injections have played a key role in averting a major credit crunch. A counterfactual analysis suggests that, absent these non-conventional measures, output, consumption, investment and the GDP deflator would have been 2.5, 0.5, 9.7, and 0.5 percent lower on average over 2009, respectively