Collateral Frameworks
The Open Secret of Central Banks

The first book-length study of the importance of collateral frameworks in monetary policy, focusing on the Eurozone and euro crisis.

Kjell G. Nyborg (Author)

9781107155848, Cambridge University Press

Hardback, published 15 December 2016

344 pages, 1 b/w illus. 9 colour illus. 21 tables
23.5 x 15.8 x 2 cm, 0.68 kg

'This book studies the collateral framework in the euro area in detail, and uses the framework to provide a narrative of the euro crisis from the perspective of collateral policy. The book has a wealth of institutional and economic data and information with a level of density and accessibility unavailable elsewhere. Professor Kjell Nyborg is ideally situated to write this book, given the unique blend of his academic research and policy experience. This book is one of a kind, and is a must-read for anyone who wishes to learn more about the role of central banks in society.' Suresh Sundaresan, Chase Manhattan Bank Professor of Economics and Finance and Faculty Director, India Business Initiative (IBI), Columbia University

Central bank collateral frameworks are an often overlooked feature of monetary policy that play a key role in the monetary and financial system. Readers will discover how central banks conduct and implement monetary policy beyond merely setting interest rates, and develop their understanding as to how collateral policies may affect financial markets, financial stability, and the real economy. This book studies the collateral framework in the euro area in detail, and levers this analysis to provide an account of the euro crisis from the perspective of collateral policy. Readers gain access to a wealth of institutional and economic data and information with a level of density and accessibility unavailable elsewhere. This book, the first of its kind, is a valuable read for academic monetary and financial economists, those working in banking and policy-making financial institutions, and anyone who wishes to learn more about the role of central banks in society.

Preface
Acknowledgments
1. Background and motivation
2. Collateral frameworks: overview
3. Monetary policy in the euro area
4. Production and usage of collateral
5. Haircuts
6. Ratings and guarantees
7. Market and theoretical prices
8. Collateral 'own use'
9. Non-regulated markets
10. Market discipline
11. Bailing out the euro
12. Endgame of euro crisis
13. Restoring credibility
14. The problem with collateral
15. Concluding remarks
References
Index.

Subject Areas: Banking [KFFK], Finance [KFF], Monetary economics [KCBM], EU & European institutions [JPSN2]