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dc.contributor.authorAbbassi, Puriyaen_US
dc.contributor.authorLinzert, Tobiasen_US
dc.date.accessioned2012-07-19en_US
dc.date.accessioned2012-07-20T13:20:29Z-
dc.date.available2012-07-20T13:20:29Z-
dc.date.issued2012en_US
dc.identifier.isbn978-3-86558-820-3en_US
dc.identifier.urihttp://hdl.handle.net/10419/60000-
dc.description.abstractThe financial crisis has deeply affected money markets and thus, potentially, the proper functioning of the interest rate channel of monetary policy transmission. Therefore, we analyze the effectiveness of monetary policy in steering euro area money market rates looking at, first, the predictability of money market rates on the basis of monetary policy expectations, and second the impact of extraordinary central bank measures on money market rates. We find that during the crisis money market rates up to 12 months still respond to revisions in the expected path of future rates, even though to a lesser extent than before August 2007. We attribute part of the loss in monetary policy effectiveness to money market rates being driven by higher liquidity premia and increased uncertainty about future interest rates. Our results also indicate that the ECB's non-standard monetary policy measures as of October 2008 were effective in addressing the disruptions in the euro area money market. In fact, our estimates suggest that non-standard monetary policy measures helped to lower Euribor rates by more than 80 basis points. These findings show that central banks have effective tools at hand to conduct monetary policy in times of crises.en_US
dc.language.isoengen_US
dc.publisherDt. Bundesbank Frankfurt, M.en_US
dc.relation.ispartofseriesDiscussion Paper, Deutsche Bundesbank 14/2012en_US
dc.subject.jelE43en_US
dc.subject.jelE52en_US
dc.subject.jelE58en_US
dc.subject.ddc330en_US
dc.subject.keywordMonetary transmission mechanismen_US
dc.subject.keywordNon-standard monetary policy measuresen_US
dc.subject.keywordEuropean Central Banken_US
dc.subject.keywordInterbank money marketen_US
dc.titleThe effectiveness of monetary policy in steering money market rates during the financial crisisen_US
dc.typeWorking Paperen_US
dc.identifier.ppn719780322en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
dc.identifier.repecRePEc:zbw:bubdps:142012-
Appears in Collections:Discussion Papers, Deutsche Bundesbank

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