New Zealand's emergency liquidity measures during the global financial crisis
This article discusses the steps taken by the Reserve Bank to alleviate market stress and maintain market functioning during the international financial crisis of 2007–09. Our statistical analysis suggests that the emergency liquidity policies introduced during the crisis period narrowed bank funding spreads in the domestic money market by 5-7 basis points, on average, per announcement. We also find some evidence that these policies helped to reduce the volatility of money market spreads. Collectively, these policies had a material cumulative impact, probably going well beyond the simple announcement effects on money market conditions captured by our formal analysis. This is because some of the policies were taken deliberately in a pre-emptive manner, and more generally they helped to limit broader disruption to the economy’s access to credit during the recession.
Volume (Year): 74 (2011)
Issue (Month): (June)
|Contact details of provider:|| Postal: |
Phone: 64 4 471-3767
Fax: 64 4 471-2270
Web page: http://www.rbnz.govt.nz
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Joyce, Michael & Lasaosa, Ana & Stevens , Ibrahim & Tong, Matthew, 2010. "The financial market impact of quantitative easing," Bank of England working papers 393, Bank of England.
- Joseph Gagnon & Matthew Raskin & Julie Remache & Brian Sack, 2010.
"Large-scale asset purchases by the Federal Reserve: did they work?,"
441, Federal Reserve Bank of New York.
- Joseph Gagnon & Matthew Raskin & Julie Remache & Brian Sack, 2011. "Large-scale asset purchases by the Federal Reserve: did they work?," Economic Policy Review, Federal Reserve Bank of New York, issue May, pages 41-59.
When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:june2011:5. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.