Have the Fed liquidity facilities had an effect on Libor
Jens H. E. Christensen
Abstract
Jens H. E. Christensen
Abstract
In response to turmoil in the interbank lending market, the Federal Reserve inaugurated programs to bolster liquidity beginning in December 2007. Research offers evidence that these liquidity facilities have helped lower the London interbank offered rate, a key market benchmark, significantly from what it otherwise would have been expected to be.
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In response to turmoil in the interbank lending market, the Federal Reserve inaugurated programs to bolster liquidity beginning in December 2007. Research offers evidence that these liquidity facilities have helped lower the London interbank offered rate, a key market benchmark, significantly from what it otherwise would have been expected to be.
Key concepts: Market liquidity, Libor, Interbank lending market, Liquidity crisis, Liquidity risk, Business, Monetary economics, Financial system