Options de recherche
Page d’accueil Médias Notes explicatives Recherche et publications Statistiques Politique monétaire L’euro Paiements et marchés Carrières
Suggestions
Trier par
Pas disponible en français

Francesco Papadia

3 August 2006
OCCASIONAL PAPER SERIES - No. 49
Details
Abstract
This paper reviews the role and effects of the collateral framework which central banks, and in particular the Eurosystem, use in conducting temporary monetary policy operations. First, the paper explains the design of such a framework from the perspective of risk mitigation, which is the purpose of collateralisation. The paper argues that, by means of appropriate risk mitigation measures, the residual risk on any potentially eligible asset can be equalised and brought down to the level consistent with the risk tolerance of the central bank. Once this result has been achieved, eligibility decisions should be based on an economic cost-benefit analysis. Second, the paper looks at the effects of the collateral framework on financial markets, and in particular on spreads between eligible and ineligible assets.
JEL Code
E43 : Macroeconomics and Monetary Economics→Money and Interest Rates→Interest Rates: Determination, Term Structure, and Effects
E58 : Macroeconomics and Monetary Economics→Monetary Policy, Central Banking, and the Supply of Money and Credit→Central Banks and Their Policies

Notre site Internet utilise des cookies

Nous utilisons des cookies fonctionnels pour conserver les préférences des utilisateurs, des cookies analytiques pour améliorer les performances du site Internet et des cookies tiers définis par des services tiers intégrés au site. Vous pouvez les accepter ou les refuser. Pour de plus amples informations ou pour explorer vos préférences en matière de cookies et de logs, nous vous invitons à :