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A critique of the ECB's liquidity policies | 66 comments (66 topical, editorial, 0 hidden)
Re: A critique of the ECB's liquidity policies (none / 0)
It looks that in 2007 overnight rates were pushed to a lower bound and have stayed there, punctuated by somewhat regular spikes upwards. This could be roughly consistent with the contraction of the shadow banking system's credit creation. Anyone who understood the implications of this metric would have suspected that trouble might have been looming, and conversely, those who suspected trouble could have produced the contraction.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Thu Feb 24th, 2011 at 09:20:34 AM EST
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A critique of the ECB's liquidity policies | 66 comments (66 topical, 0 editorial, 0 hidden)
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