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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 (4.00 / 6)
The €76.5bn is how much the ECB wanted to drain, and the auction of weekly deposits was reported as a success.

However, the desired volume has been at that level since December, and failed to be filled by maybe 10%. Last June, the desired volume was something like 55bn and only 35bn got filled.

So, currently, the last time the deposit auction failed to be filled the desired volume was under €80bn. I argue that the ECB is paying up to a 2% premium for this liquidity, so if it fails to be filled it means the system-wide slack of 1-week liquidity is below €80bn.

You can access data for these auctions at the ECB: Open Market Operations page

20110021OT23/02/201102/03/201170.35 %0.7 %0.58 %-77 bn Ann. All.
"Ann" and "All" refer to "Announcement" and "Allotment".

On the right margin of the page there's the mother lode:

History All operations since 1999


Keynesianism is intellectually hard, as evidenced by the inability of many trained economists to get it - Paul Krugman
by Carrie (migeru at eurotrib dot com) on Thu Feb 24th, 2011 at 03:46:24 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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