Browsing Norges Banks vitenarkiv by Author "Illing, Gerhard"

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    • “Interest Rate Trap”, or: Why Does the Central Bank Keep the Policy Rate Too Low for Too Long Time? 

      Cao, Jin; Illing, Gerhard (Working Papers;12/2011, Working paper, 2011)
      This paper provides a framework for modeling the risk-taking channel of monetary policy, the mechanism how financial intermediaries’ incentives for liquidity transformation are affected by the central bank’s reaction to ...

    • Money in the Equilibrium of Banking 

      Illing, Gerhard; Cao, Jin (Working Papers;22/2015, Working paper, 2015)
      In most banking models, money is merely modeled as a medium of transactions, but in reality, money is also the most liquid asset for banks. Central banks do not only passively supply money to meet demand for transactions, ...