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Central bank liquidity during the financial market and economic crisis: observations, thoughts and questions

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  • Pikkarainen, Pentti

Abstract

The paper concentrates on illustrating and assessing central banks liquidity operations during the crisis that started in August 2007. In addition to the ECB, the central banks of Sweden, Switzerland, the United Kingdom, Australia, Japan, Canada and the United States are analyzed. During the crisis the liquidity operations of central banks have converged. In many cases, central bank balance sheets have undergone extremely strong growth. The actions by central banks raise a number of questions concerning exit from the measures taken, the impact of the measures, central banks risks and their governance structure

Suggested Citation

  • Pikkarainen, Pentti, 2010. "Central bank liquidity during the financial market and economic crisis: observations, thoughts and questions," Bank of Finland Research Discussion Papers 20/2010, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:rdp2010_020
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    References listed on IDEAS

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    1. Claudio Borio & Anna Zabai, 2018. "Unconventional monetary policies: a re-appraisal," Chapters, in: Peter Conti-Brown & Rosa M. Lastra (ed.), Research Handbook on Central Banking, chapter 20, pages 398-444, Edward Elgar Publishing.
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    9. Samuel Cheun & Isabel von Köppen-Mertes & Benedict Weller, 2009. "The collateral frameworks of the Eurosystem, the Federal Reserve System and the Bank of England and the financial market turmoil," Occasional Paper Series 107, European Central Bank.
    10. Mr. Vladimir Klyuev & Phil De Imus & Mr. Krishna Srinivasan, 2009. "Unconventional Choices for Unconventional Times Credit and Quantitative Easing in Advanced Economies," IMF Staff Position Notes 2009/027, International Monetary Fund.
    11. Mr. Peter Stella, 2009. "The Federal Reserve System Balance Sheet: What Happened and Why it Matters," IMF Working Papers 2009/120, International Monetary Fund.
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