"Optimal liquidity provision : Alternative views from the past" : Un article de Stefano Ugolini dans Vox

Retrouvez l’article de Stéfano Ugolini, Chercheur au lereps en collaboration avec Clemens Jobst

Central banks today provide liquidity exclusively through purchases of (mostly) government bonds and through collateralised open-market operations. This column considers the evolution of liquidity provision by central banks over the past two centuries, and argues that there are alternative approaches to those that are focused on today. One such alternative is a revival of the 19th century practice of uncollateralised lending. This would discourage market participants from relying on informational shortcuts, and reduce the likelihood that informational shocks trigger collateral crises.